mead cohen berger shevtsova garfinkle michta grygiel blankenhorn
Greeks Bearing Debts
The Fate of the Greeks May Hang on the Banks
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  • endthespend

    The Greeks have been
    living their happy indolent ways at the expense of the more responsible members
    of the EU for decades. The results of the recent election show that Greeks are
    unwilling to change their indolent ways at the expense of others without some
    strong external encouragement. As it is long past time for the Greek people to change
    and accept ALL of the responsibility for their indolence, the EU and the World
    Bank must let the Greek banks fail and end the financial bailout they have been
    providing. Let the change begin!! – however painful the results of the choices
    made by the Greek people themselves.

  • Curious Mayhem

    Greece will leave the eurozone at or before the moment that Germany and France agree to dissolve it — which will happen before the end of the decade. They’ll decide it’s no longer worth it.

    However, Greece is likely to go earlier. There’s the accelerating run on the banks (about 1% of deposits a day), a crisis for March or April. Fiscally, the crisis will come in May or June, possibly before, when Syriza tries to implement pieces of its program and finds it has no money to do so.

    Once Greece is out the eurozone, its creditors will be forced to accept more write-downs on debt. But the Greek voters will be forced to accept immediate and drastic devaluation, a big inflationary spike, and an insolvent government. Greece will be shut out of the capital markets for a decade or more, like Argentina.

    Greece suffers from the misfortune that most of its talented population long ago left for greener pastures elsewhere.

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