greece's choices

[rdking647]

greece has 2 choices,neither of them good.

1. accept austerity that germany and the rest of the EU want to impose on them

2. tell europe no dice and default.

if they choose #1 then they have a painful period coming

if the choose #2 then they also have a painful period coming. defaulting means they will be tossed from the Euro and have to go back to the drachma.. that means high inflation and a high cost of credit.. also a loss of access to world credit markets..


which would be worse for the greek people???? #2 may be more painful in the short/medium term but at least they control their own fate and dont have to accept conditions imposed on them...

[Puzzledtraveller]

1. damned if they do, damned if they don't

In the long run perhaps they would be better off going solo, thought it will take a lot of time to strengthen their economy to self sustainging levels. They've been around a long time and are a proud people, I have faith in Greece.

[abelenkpe]

2. They should default

austerity props up banks, is undemocratic and punishes workers.

[rdking647]

6. but if they default they get austerity anyway

lets assume they default and go back to the drachma.. how do they pay the pensions for their workers???? they have to pay them in massivly devalued drachmas..

[dkf]

3. If they can't handle austerity, what will they say to #2?

[banned from Kos]

4. they should take #1 which includes a 50% write down on their bonds

but the terms of last week's deal do not declare that as a "default".

They are damn lucky to get that.

[Freddie Stubbs]

5. If they choose default, they will get austerity anyway

They are going to have to balance their budget immediately, as no in their right mind will loan them a cent.

[Poll_Blind]

7. I stand with the majority of the Greeks on this one- the second option.

The problem with the first option is that they'd be continuing to buy into a rigged game.

PB