[quote=eyePod]Cogno wrote “Greece, Please Do The Right Thing: Default Now”
The big banks were not the primary movers, if you’re talking about last year’s bailout. It was the EU, IMF, and European parliaments who engineered the bailout. The reason was because Greece’s ability to borrow and sustain itself was doubtful.
Please give us your analysis of the effect on Greece of a complete default.[/quote]
I agree that Greece needs to default (as do all the FBs in the U.S.).
They can go back to their own currency, devalue, and then things will get back to “normal,” just like they did with every other country that defaulted in this way. They go through a rough patch, but then they can rebound with a clean slate.
At some point, lenders need to get the message that they are responsible for risk management. For far too long, they have not priced risk appropriately. Perhaps, if enough people default, that will change. It can’t come soon enough.
