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Think of it like this: when a country needs to 'borrow', they're selling bonds. An investment vehicle. If you buy bad bonds as a typical investor, no one bai
by Mikeb85 11y ago
Think of it like this: when a country needs to 'borrow', they're selling bonds. An investment vehicle. If you buy bad bonds as a typical investor, no one bails you out - you lose your investment. That's how it should have gone for Greece. Their 'investors' should have lost during the crisis, like everyone else, instead the Euro governments bailed them out and created this prolonged mess...
- hackuser 11y agoThat ingores the impact on the poor and pensioners of Greece. Just let them starve?
- Mikeb85 11y agoThey wouldn't starve. Many countries have survived a default without people starving. Presumably, in the case of a Greek default, the government would be using the money to pay pensioners and give welfare instead of paying bond-holders...
- hackuser 11y agoSorry, I misread what you were saying. I agree.
- justincormack 11y agoThe bond holders with Greek government bonds did lose, their debt was restructured with a 50% haircut. It was the bank loans that were bailed out.