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> Varoufakis fought to find solutions that would allow Greece to actually be able to repay their debt. Default is not a solution to repay a debt. You can choos

by pif 10y ago

> Varoufakis fought to find solutions that would allow Greece to actually be able to repay their debt. Default is not a solution to repay a debt. You can choose to default, but you can't expect any credibility later. The message Varoufakis sent to Greeks was: "Let's just say we don't want to pay and everyone will forget about in a couple of years."

yossarian78 10y ago
Just like Iceland did?
dnautics 10y ago
Default is a solution if you have a plan to not ever incur sovereign debt. This however is impossible with neoliberal social state governing models.
- atmosx 10y ago
  Nope, history says otherwise. As long as the debt stands Greece will not be able to get any financing exactly because it's assured that it will not be repaid. The only way to get financing is by debt restructuring. It has happened time and again. You'd be amazed how many countries defaulted the last century. I think Germany defaulted twice.
  - pm90 10y ago
    Yeah, I just don't understand how so many people fail to see the most obvious solution: default and stop paying interest. Sure, you're credibility will be lost for now, but then you can slowly build it back up again since you're no longer burdened with paying back the defaulted loans. Its not magical: as it currently stands, Greek economy is going to die a slow protracted death anyways.
hackermailman 10y ago
Shredding the paper debt and defaulting has worked before for Mexico, Argentina and Solon of Athens.
atmosx 10y ago
> The message Varoufakis sent to Greeks was: "Let's just say we don't want to pay and everyone will forget about in a couple of years." The solution he proposed to the EU was rejected and the next day was applied by the letter on Ukraine. Plus being accused of talking macro-economics on a Eurogroup should be like accused of liking basketball at an NBA playoff game. But then again, if the room is full of politician, who don't understand the first thing about economics and just blindly execute, that's what happens.

by pif 10y ago

yossarian78 10y ago

Just like Iceland did?

dnautics 10y ago

Default is a solution if you have a plan to not ever incur sovereign debt. This however is impossible with neoliberal social state governing models.

atmosx 10y ago
Nope, history says otherwise. As long as the debt stands Greece will not be able to get any financing exactly because it's assured that it will not be repaid. The only way to get financing is by debt restructuring. It has happened time and again. You'd be amazed how many countries defaulted the last century. I think Germany defaulted twice.
- pm90 10y ago
  Yeah, I just don't understand how so many people fail to see the most obvious solution: default and stop paying interest. Sure, you're credibility will be lost for now, but then you can slowly build it back up again since you're no longer burdened with paying back the defaulted loans. Its not magical: as it currently stands, Greek economy is going to die a slow protracted death anyways.

hackermailman 10y ago

Shredding the paper debt and defaulting has worked before for Mexico, Argentina and Solon of Athens.

atmosx 10y ago

> The message Varoufakis sent to Greeks was: "Let's just say we don't want to pay and everyone will forget about in a couple of years." The solution he proposed to the EU was rejected and the next day was applied by the letter on Ukraine. Plus being accused of talking macro-economics on a Eurogroup should be like accused of liking basketball at an NBA playoff game. But then again, if the room is full of politician, who don't understand the first thing about economics and just blindly execute, that's what happens.