Yes, but creditors lose less in this scenario than in the other.

Though really it seems like everyone is losing in this. Some corporations in Europe might be happy (weak Euro makes their exports competitive), but pretty much no-one else

Yeah, I understand that.

How many European corporations actually produce stuff that gets exported outside of the EU? I'm sure most stuff that goes in the international markets is probably produced in South-East Asia. Cars/Planes might be an exception... but I'm sure that they mainly get built in the regions in which they're sold.

The only people who really benefit from this are the Eurocrats... the precedents that these deals are setting, in terms of the EU controlling state budgets, is ridiculous. If the EU/Eurozone survive this crisis... democracy/state sovereignty in the region ain't gonna look pretty.

That doesn't address the issue of corrupt officialls. If the officials of Greece are corrupt and not currently spending their money how they should, how is giving them more money going to solve the problem?  All i keep reading is how the "people" of greece are suffering while the governemnt officials are keeping their money.

Have you seen what happens if they default.

Worst case scenario essentially turns greece into a third world nation as they can't even afford food and basic medical supplies.

A greek default isn't pretty, but it's better then the alternative.

It's where the greeks put themselves, by being a true debtor state for god knows how many years... going to the lengths of hiding their debts with accounting tricks.

I mean, BEST case scenario is likely a 15% GDP Decline in just the first year, if we assume that the EU Will let them stay .

70% of Greeks still want to keep the Euro so 99% of tourists are going to choose Turkey or Egypt instead.

I hope hosting the Olympics on credit/dodgy accounting isn't an omen.

People would still choose to go to Egypt?

I'd always take Turkey over Greece, anyway. Whenever I go to Turkey, I see extremely hard-working people, many of whom have moved half way across the country just to take up waiting jobs, etc. People in Greece seem to want (like all Europeans and Brits) the Government to hand them stuff on a plate.

I think it's very rich of the French and especially the Germans of accusing the Greeks of mismanaging their economy. They were the one's who gave them cheap credit in order to export their products to them. But yeah agree it's mostly the Greeks fault (in particular the Elites who avoid paying taxes) though it just goes to show how the EU in it's current form is so deeply flawed. The Germans and the Greeks with their totally different culture and work ethic using the same currency? Yeah whatever.

This latest "austerity" package will kill us. Our economy will contract a further ~6% AT THE VERY LEAST. We should just default and go back to the drachma. Greece would fill with tourists yet again (maybe even more so, with Spain, Portugal, Italy,etc in the Euro)

Currency prices depend mainly on trust and resources, which Greece lacks. A new drachma would be worthless.

Wasn't Germany a debtor state since WW2?