Giving up control

[CryingSheep]

We paid the WWII debt off within the last 10 years (meaning it took us nearly 70 years), and it wasn't anything like the % debt to GDP that Greece has now. In 2032 they'll have to start defaulting again (simply due to the size of the debt) and what happens then? The Greeks would have to discover oil, gold or diamonds in mahoosive quantities to make their debt "not much of a burden". Interest is still accruing, and most of it is being rolled into the debt.
Greece may not be the one which brings down the Eurozone (I think that will ultimately be Italy) but it will cause so much pain that the Germans finally pull the plug.

Last time Greece default was in 1932... not sure if that was what you meant by 'defaulting again'...

[BlasterBates]

We paid the WWII debt off within the last 10 years (meaning it took us nearly 70 years), and it wasn't anything like the % debt to GDP that Greece has now. In 2032 they'll have to start defaulting again (simply due to the size of the debt) and what happens then? The Greeks would have to discover oil, gold or diamonds in mahoosive quantities to make their debt "not much of a burden". Interest is still accruing, and most of it is being rolled into the debt.
Greece may not be the one which brings down the Eurozone (I think that will ultimately be Italy) but it will cause so much pain that the Germans finally pull the plug.

UK WWII debt was around 230% of GDP



Greece national debt is 180%, and will drop over the years.

[Mordac]

Last time Greece default was in 1932... not sure if that was what you meant by 'defaulting again'...

Greece couldn't afford to pay a cent, so instead of defaulting, they deferred. That was a political decision. It was a default by any other name...

[Mordac]

UK WWII debt was around 230% of GDP



Greece national debt is 180%, and will drop over the years.

Fine, you cling to that, but it won't drop. It will increase. The debt interest over the next 19 years will make sure it does.

[BlasterBates]

Greece couldn't afford to pay a cent, so instead of defaulting, they deferred. That was a political decision. It was a default by any other name...

Yes but it wasn't a default so they can access the markets for debt. When a country defaults it can't.

If you agree to defer with your creditors it isn't a default. That applies to any company and bond holders, this isn't specific to Greece.