Grexit contagion risk greater than expected, say managers

The impact of a “Grexit” could be more serious than the market is pricing in, due to a contagion risk that would destabilise the political fabric of other eurozone nations, say investors and commentators based in London. Some argue an exit would be suicidal for both sides, resulting in a Greek humanitarian crisis, severe recession, near-hyperinflation, potential military intervention and even a political lurch towards Russia. The stakes are high and US president Barack Obama has u…