Re:Review of “Adults in the Room” by Yanis Varoufakis
by Bartweiss on Wednesday May 03, 2017 @02:45PM
(#14258818)
The cynical play for Greece might have been trying to schedule their bailouts in a default-friendly way. Accept bailouts, conduct several rounds of aggressive cuts to balance the budget (while financing with tranche funds), blame the Eurozone for them at home, and then default with a balanced budget immediately after a funding unlock.
I'm not sure it was possible - the deficit was too big to close without damaging the economy - but I suspect that leaning on international support while preparing an easy default might have been the best chance.
Obviously Greece needs a balanced budget for defaulting. Too bad it seems to be moving the other way.