Greece should default and abandon the euro

[Hawkowl]

Greece is stuck in a vicious cycle of insolvency, low competitiveness and ever-deepening depression. Exacerbated by a draconian fiscal austerity, its public debt is heading towards 200 per cent of gross domestic product. To escape, Greece must now begin an orderly default, voluntarily exit the eurozone and return to the drachma....

A Greek exit may have secondary benefits. Other crisis-stricken eurozone economies will then have a chance to decide for themselves whether they want to follow suit, or remain in the euro, with all the costs that come with that choice. Regardless of what Greece does, eurozone banks now need to be rapidly recapitalised. For this a new European Union-wide programme is needed, and one not reliant on fudged estimates and phoney stress tests. A Greek exit could be the catalyst for this approach.....

The recent experiences of Iceland, along with many emerging markets in the past 20 years, show that the orderly restructuring and reduction of foreign debts can restore debt sustainability, competitiveness and growth. Just as in these cases, the collateral damage to Greece of a euro exit will be significant, but it can be contained.

http://blogs.ft.com/the-a-list/2011/09/19/greece-should-default-and-abandon-the-euro/?#axzz1YOipjwF8

It looks like virtually everyone agrees that Greece is going to default. The questions seem to be whether Greece will remain in the Euro? If it exits the Euro, will other PIIGS default and exit as well? How many banks are going to go belly up?

[Gman]

1. Why do I have the feeling that

the whole European economic crisis is being orchestrated by some plutocratic forces that despise European style socialism?

[Hawkowl]

2. I get the same feeling

I also think this is going to blow up in the face of the plutocrats. If Greece goes the way of Iceland, the rest of the PIIGS could soon follow and unravel the whole oppressive, corrupt world wide IMF/Wall Street banking system. I believe we are on the cusp of a sea change in western economic systems.

Governments and banks are going to fall. Who knows what will take their the place?

[golfguru]

4. If the banking system collapses then where will people go

to get a personal loan for education, to start a business?
Or even an affordable mortgage?

[Hawkowl]

5. A new banking system

I don't think the banking system will disappear, although a lot of individual banks and bankers might. The system as it stands now is unsustainable, and so new banks and new rules will replace a failed system. May we live in exciting times. Somebody has cursed us really well...

[golfguru]

6. I will shed no tears if the big banks fail

such as Goldman, Morgan, BOA etc. I get better service from the
regional small banks. That said, all we heard is those banks are too big to fail and taxpayers coughed up Trillion dollars to bail them out. What crock.

[tama]

3. ECB shoud default

and leave European citizens in peace.

[bossy22]

7. umm

central banks can't default.