Time flies when you are dealing with a debt crisis. Only last year we were being assured that there was no way the Greeks would not be rescued by their fellow eurozone partners. In any case, it wasn't such a big deal since the Greek economy was only about 3% of Europe's GDP. Never mind that the same was said about US sub prime.
Now, after several aid packages, with their corresponding austerity programs, have resulted in 5% contraction in Greek GDP, it seems the Greeks have wised up to the fact that the German and French politicians are more interested in covering up the sins of their bankers than in helping their Greek brothers.
No matter what the politicians say, these crises are all the same. People just hate deflationary adjustments and eventually they reject the austerity measures, which are for the benefit of the existing debt holders, in favor of other alternatives. Since the policy makers do not seem to have a plan B, some are beginning to prefer a default. How ironic if the Greek themselves were to reject the next aid package.
After you listen to the story below. We suggest you click on our "Back To The Future..." link, if you haven't already. Plus ça change...
Speculation Grow: Greece Will Default On Its Debts (audio)
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