Quoting former Bank of England policy maker William Buiter the article:
“We could see our first EU 15 sovereign default since Germany had it in 1948.”
More from the article:
The EU’s economic affairs commissioner said late yesterday that officials are ready to help Greece with its budget deficit after concerns about its public finances sparked a rout in Greek government bonds. Fitch Ratings cut its rating on the nation’s debt yesterday to BBB+ and two other major ratings companies are threatening to follow.OTOH:
There’s “absolutely” no risk Greece will default, Finance Minister George Papaconstantinou said in an interview today with Bloomberg Television. Greek banks are “fundamentally sound” and Greece will not seek an EU aid package, he said.Well, that makes me feel better. The Greek Finance Minister said everything is fine. Nothing to see here. Now move along.
How many nations fail before we reach the point that nobody can bail them out?
You can run an economy on debt for only so long.