Something I have not heard discussed wrt Greece is what happens if the Greeks reject bailout, and the government is effectively bankrupt.
Does the mean a failure of the Greek central bank? And Greek trading banks?
Or could these be supported by IMF/Euro Zone/EU/Other Banks while the country itself is bankrupted?
I assume the social impact be of all Greek government spending being choked off would be even more catastrophic than their sad current situation. How would they cope? How would the EU or others help them?
How is this different from a government default on international loans (like Argentina) where at least they could control & print their own money?
Thursday, May 24, 2012
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