Soleron said:
I want a country to at least try it. They keep almost getting there then backing off and fixing nothing. I really really wanted Greece to vote the anti-bailout party for this reason. |
Well first off... Greece already did default. When they forced bondholders who didn't agree to a hairut to take it anyway.
Outside which You act like a country has never defaulted on their debt before. It's happened quite often actually.
Zimbwabwe Defualted in 2006.
Venezuela Defaulted in 2004.
Ecuador just defaulted like 4-5 years ago.
I'm sure there are dozens of other countries that have defaulted in that time period too.
It's just rarely ever pretty and usually followed by decades of economic trouble and future defaults as the country can never pull itself out of the default cycle due to too much spending and it digs itself further and further into a hole and hurt it's people.
Ecuador was pretty much the only country to have a successful defaut.
Though may people think Iceland defaulted it never did. Unlike most countries it smartly decided to NOT assume responsibility for the banks loses. If only the US would of done the same.
