10-06-12, 03:21 PM
Saw a programme with Portillo in Greece the other week anecdotal evidence suggests the Greek people don't want to leave the the Euro as they it would mean going back to 20%+ interest rates and a corrupt government 'controlling' the countries finances. If the Greek people believed their currency would change to the Drachma and devalue, it would create even more Greek bank problems as everyone would withdrawal Euro to stick under their mattresses.
Dunno what the answer is, but Greek (& Irish etc) government debt should never have been at the same rate as German government bonds, massively different credit risks which were ignored. It was assumed that all Euro government borrowing had the same risk of default as Germany.
Dunno what the answer is, but Greek (& Irish etc) government debt should never have been at the same rate as German government bonds, massively different credit risks which were ignored. It was assumed that all Euro government borrowing had the same risk of default as Germany.