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Local Experts Discuss Impact Of Greek Election On U.S. Economy

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(New Democracy (ND) party supporters celebrate as they watch the exit polls at the party's main election campaign kiosk in Athens) (credit: ANDREAS SOLARO/AFP/GettyImages)

(New Democracy (ND) party supporters celebrate as they watch the exit polls at the party’s main election campaign kiosk in Athens) (credit: ANDREAS SOLARO/AFP/GettyImages)

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By Pat Loeb

PHILADELPHIA (CBS) — U.S. market analysts have been watching the Greek election results closely because they’ve been warning the outcome could have a huge impact on the U.S. economy. But some local economic experts say any impact would be long-term and, partially, psychological.

The Greek economy is small but markets worried it might start a trend that larger economies would follow, and if the trend was to leave the eurozone, Temple Professor Gary Witt says, that would have an impact on trade.

“Our exports to Europe would go way down,” says Witt. ” Our imports from Europe would go way up and our balance of trade would get worse.”

That would be bad, but it’s pure speculation. But Drexel professor Marco Airaudo says speculation has become a major factor in the global economy, because so much trade is in financial assets, as opposed to commodities with inherent value.

“So whenever there’s news about something coming up, they try to speculate on it,” Airaudo says. “They gamble on it.”

Airaudo says that’s why U.S. markets may react out of proportion to the actual results of the Greek election.

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