Greece’s financial dire straits are so severe that the situations could end up unraveling other financial fragile countries in the euro zone. So, what should it do about its debt? This simple opinion piece is one of the few that makes understanding the Greek situation easier, not harder
Should they stay or should they go? Now that it’s (almost) all right to admit that Greece is insolvent, the question can now be asked: When should it default, and should it stay inside the euro zone or not? The first question is a lot easier than the second. An imminent default, rumored by some on Monday, does nobody any good. The Greek government still has a primary deficit, and can’t afford to repudiate its debts while it still can’t cover its outlays with tax revenues. It also has no guarantee that the European Central Bank would continue to lend against defaulted Greek debt, and would have to reckon with the risk of its banking system collapsing instantly as a result.
Read more at The Wall Street Journal.