generic-user-1 said:
most greeks dont have "money" on the bank left. sure they will lose some money, but nothing they cant survive or that realy hurts. business will get MORE credits 1 year after a banking crash then without. the banks are zombies, they cant lend anything as long as they dont default, and they all will default if the government defaults. a the greek government doesnt need new credits if they stop repay the old. having a weak currency is realy helpfull if you want your gdp to grow and to export more, and most greek people cant afford importe goods anyway. inflation isnt that bad, its much fairer than just cutting social benefits and pensions. a default would help greece in the shortrun, there wouldnt be more pain. |
Sorry but no. you don't seem to understand how the financial systems in place work. a default would probably be a great long term outcome, it would be a disasterous short term one. it isn't just people's money that becomes inaccessible. think about all the businesses, they can no longer access money or credit to pay staff. People no longer have money to spend on anything except essentials sending many businesses into a spiral of bankruptcy. Short term would see a massive spike in unemployment as well as crippling financial restrictions on much of the population and a mass excodus of investment (that part is already happening though). Think of the effects of lehman brothers but magnify them as there won't be a government to bail them out.
