Greece’s bailout expires, country defaults on IMF payment
Source: My Way News – Greece’s bailout expires, country defaults on IMF payment
Sooner or later it was going to happen. The sheer arrogance of the Greeks declaring to hold a vote to determine if they are entitled to Germany’s money in order to keep their entitlements was beyond belief. I can’t say that I really blame Merkel for saying “Enough!”
Now, I won’t put it beyond the realm of possibility that some last ditch deal gets made. If so, it is nothing more than punting the issue down the road. There really is only three solutions here.
- Greece cuts its entitlements and lives within its means.
- Europe supports and pays Greece’s massive entitlements programs.
- Europe forgives Greece’s debts outright.
The big problem with #3 is that it will almost certainly lead back to having to choose between #1 and #2 again. If that becomes a cycle, then the reality is that Europe has chosen #2 – paying for Greece’s programs.
Next on the critical watch list? Spain. They are in bad shape as well. If it goes next in the near future, then anticipate an escalating domino effect.
And to think the U.S. has a President who is trying to push the country into such a European system.