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Instant defaults? Not necessarily. As long as you find enough buyers for govt bonds, these governments can keep going for several years. But yes, I agree that
by simonebrunozzi 5y ago
Instant defaults? Not necessarily.
As long as you find enough buyers for govt bonds, these governments can keep going for several years. But yes, I agree that long term it's going to be a serious issue. Defaults wouldn't be "instant", though, as you say.
- heurisko 5y agoSouthern European states, such as Greece are already bankrupt--they are just in the European Union's debtor's prison. There is a fundamental schism in the EU, and that is they share a currency, without a common fiscal policy. It's a problem that will never go away, until member states cede power to set budgets, pensions, etc. to the EU, which I can't see happening. https://www.theguardian.com/commentisfree/2018/aug/26/greece-was-never-bailed-out---it-remains-a-debtors-prison-and-the-eu-still-holds-the-keys https://www.theguardian.com/commentisfree/2018/aug/26/greece...