Originally posted by scooterscot
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The new drachma will be immediately devalued, as a result the debt owed by Greek mortgage holders (which will have been converted to new drachma) will fall dramatically and they will be free to accept much lower Euro denominated offers on their property and still pay off their new drachma debt. The knock on effect of this will be a reduction in property values when priced in any asset class other than new drachmas. Similar to what has happened in the UK.
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