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Really? You are from Greece, and you're serious about this? I didn't expect that this would be a serious alternative. OK, suppose that government debt gets defa

Really? You are from Greece, and you're serious about this? I didn't expect that this would be a serious alternative. OK, suppose that government debt gets defaulted as Greece leaves the Euro. What about private external debt, which I think is also pretty significant? Will businesses struggle to pay this in a strong currency as their own currency depreciates, or does the private sector default, too? I just thinks this sounds like almost a pure loss.

ignifero 15y ago
Businesses will be called to pay in either case, either through higher taxes and emergency taxation (as is now), or through a devalued currency. Besides, private debt is actually low in greece. http://www.businessinsider.com/portugal-irelands-household-and-corporate-debt-levels-are-far-worse-than-ever-greece-2010-11 http://www.businessinsider.com/portugal-irelands-household-a...
justincormack 15y ago
Historically (eg Argentina) the government usually nationalised private debt in these situations if it was an issue.