Re:In praise of default
by SkyMarshal on Tuesday July 06, 2010 @04:19PM
(#1492225)
I think as long as Greece's economy is resilient to a default, and the government able extract taxes from it afterwards, it will work.
The creditors will be screwed, but new ones will be ready to lend again to a government with tax revenues and no debt.
It depends how much of the defaulted debt is foreign-held, and how much is domestically-held. If too much the latter, the economy may not recover right away, putting them in a pinch.
The creditors will be screwed, but new ones will be ready to lend again to a government with tax revenues and no debt.
It depends how much of the defaulted debt is foreign-held, and how much is domestically-held. If too much the latter, the economy may not recover right away, putting them in a pinch.