Quote:
Originally Posted by Hesla
The EU needs to find a way to just cut them loose. It would be a message to other lazy countries in the region as well.
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Not a few observors have noted that leaving the EU would be a way for Greece to float the Drachma at a level that would be easier to stomach economically . . . . . but the long term picture outside of the EU would be less palatable.
What you seem to be seeing is that all nations within the EU need to emulate the highest denominator, Germany, or there is pain to pay.
Unfortunately, Greeks don't like paying taxes, don't like collecting taxes and like to get lots of free stuff from their governments which collects no taxes.
Rock, meet hard place.
Global markets are simply looking for an orderly, negotiated transition. Every time it starts looking disorderly, things sell off a bit and monetary authorities start thinking "contagion" with sweat on their brow.
Greece by itself is a nothing country and nothing countries like Greece have gone bankrupt in the past. Its the other countries like Italy and Spain that are too big to fail and markets worry about where a Greek failure might lead. They'd rather it just stopped at Greece and that it was taken care of in an orderly fashion, with creditors negotiating a reasonable settlement and getting some pennies on their dollars.
Eventually, time will heal this.
Cowperson