0
4

[–] mscomies 0 points 4 points (+4|-0) ago  (edited ago)

Not really. If Greece walks away from over 300 billion Euros worth of debt, they're basically never ever going to be able to sell government bonds or take out a loan ever again. It's also uncertain whether foreign investors will be willing to accept payment in Drachmas. Currencies are backed up by the governments that issue them, and nobody has much trust in the Greek government anymore.

Unfortunately, there are no good solutions for Greece. I personally think that no matter what happens, they'll end up as an economic cautionary tale, like Zimbabwe's lost battle against hyperinflation.

[–] [deleted] 0 points 1 point (+1|-0) ago 

[Deleted]

0
1

[–] mscomies 0 points 1 point (+1|-0) ago  (edited ago)

Greece was clamoring to join the Eurozone too. They wanted to join the Eurozone so badly that they cooked their books and falsified their economic figures for years in order to meet the criteria to enter the Euro and stay in the Euro. And after they joined the Euro, Greece spent like a rich country, earned money like a poor country, and tricked everyone into thinking that their balance sheets were solid for over a decade. That's why they're in such deep shit right now.

You're insane if you think that Greece's creditors are just going to handwave away 300 billion Euros of debt. That will set an even worse precedent than a Greek Euro exit. The central banks do not have the assets to forgive the debts of Greece, Italy, Ireland, and every other country having issues with making their monthly payments.

0
0

[–] 404_SLEEP_NOT_FOUND ago 

nobody has much trust in the Greek government anymore.

All the more reason to walk away and not pay. They already have bad credit.