What happens when a country is defaulted?

[Stefl1504]

Dr.Grass said:

What interests me is that Greece had less debt than many of the other EU countries.

OT: Default means nothing happens. You can't pay your debt. It gets written off. What makes it complicated is that they are part of the EU, so there are several benefits that they aren't entitled to any longer.

I'm not the most knowledgeable, but this is a huge issue and no-one responded thus far... I do know that there are some countries that might follow suite soon.

Another interesting point is the effect this will have on the US, since much of that money was lent from there. Interesting times indeed.

As far as I know the Deutsche Bank has given Greece the most credits and is their biggest creditor overall, I don't know if the summed up credits of all american banks sum up to the amount of the Deutsche Bank, another huge Creditor is/was the ÖVAG which is going bancrupt and has to live on support ;P

A lot of countries have gone into a default and greece does so every 120 years ;P Spain was bancrupt 3 times in the 1500s and even the US went bancrupt in 1837.