All the articles always boils down to whether debt forgiveness will ever be offered. Greece already can’t service it’s debts so there is no way they can restructure it to pull them through. 100 year loans? lower interest rates? This is similar to all those underwater home owners trying to get housing relief by writing down loans when their house will NEVER get back to their overinflated values. The US banks never did that neither and people just walked (as they should).
In this case, I don’t think any of these loans have collateral so Greece can just walk and pay $0 and start over.
Looking at everything Merkel keeps saying, a haircut of the debt (forgiveness) isn’t going to happen so anything else will just be kicking the can down the road. The GDP of Greece has already declined like 25%+ or more already and getting worst so they are in a hole they will never get out of.
I think after they leave the Euro, Greece will now HAVE to implement reform since they simply don’t take in enough money to pay all these pensions or benefits. Instant austerity…After a wave of crime, tough times, cuts will have to be done since they simply don’t have the money to pay anyways. Like our nice state of CA…They can raise all the taxes, but if people leave the state or simply find ways to not pay, people will just leave or the state (or country) has no choice but to cut services…
At that point, I think the Greece people will maybe wake up and decide if they want to stick it out and actually pay for stuff finally or just descend into a mess of a country.
