I wrote about the UBS report two weeks ago, and it is making the rounds. Martin Wolf comments on the implications in his usual eloquent way – short but well worth the time, as always. "Yet the idea of exit is also vastly difficult to implement. Legally, it would require the country to leave the European Union. Would the latter then take the trouble of inviting the malefactor back in? Unlikely. The country would, as a result, probably be excluded from the single market, too. Moreover, it would find it impossible to exit quickly and cleanly. As the story broke, there would be a run on all its liabilities. The government would have to limit withdrawals from banks, if not close them outright. It would also need to impose capital controls, in violation of treaty obligations. It can redenominate debt contracted domestically. But it cannot do so for debt contracted abroad. Many corporations would then go bankrupt. A report from UBS estimates the total economic cost in the first year at 40-50 per cent of gross domestic product."