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http://business.financialpost.com/2011/ ... k-default/

"Wherever Senturion is housed it probably looks a lot like this, but more ominous and with blinkier lights."

So assuming greece does indeed default, what is going to happen?

Destiny wrote:So assuming greece does indeed default, what is going to happen?

"A government which defaults may be excluded from further credit; some of its overseas assets may be seized; and it may face political pressure from its own domestic bondholders to pay back its debt." [Sovereign default]

"The danger is that a default by Greece will cause investors to lose faith in other eurozone countries. This concern is focused on Portugal and Ireland, both of whom have high debt and deficit issues." [European sovereign debt crisis]

Is Greece's situation going to be any different given that it's a member of the EU? It could have a hell of an economic support group.

Even the wealthy countries in the EU aren't really in a position to be lending money. As far as supporting a country in default goes, i can't see it being on the table.

Destiny wrote:Even the wealthy countries in the EU aren't really in a position to be lending money. As far as supporting a country in default goes, i can't see it being on the table.

Well. Lending money to a country that has just defaulted on its debts? Yeah, probably not going to be on the table. Lending money to help bail out a country that is at risk, though? They did that a couple of months ago, with Greece getting 110 billion euros (and Portugal and Ireland getting some too). Of course, the crux of a sovereign debt crisis is that creditors believe there's a risk a country might not be able to pay them back, and so the bailout loan comes on the condition that the country implements an austerity package, cutting spending and raising taxes to ensure the country will be able stay on top of its finances and pay the lenders back. This is of course never popular with the public, and in Greece it is especially unpopular, which suggests the government might not be able to actually implement the austerity measures. Hence, the possibility of a sovereign default.

http://en.wikipedia.org/wiki/Austerity# ... _austerity

Austerity is becoming kind of common lately -- I wonder when it will cross the Atlantic.

ortß wrote:Lending money to help bail out a country that is at risk, though? They did that a couple of months ago, with Greece getting 110 billion euros (and Portugal and Ireland getting some too).

Didn't this amost render the euro worthless though? I may have heard wrong, but if I am right about that, well, obviously a greater loan would be needed here, which may not even be viable.

squibbles wrote:

ortß wrote:Lending money to help bail out a country that is at risk, though? They did that a couple of months ago, with Greece getting 110 billion euros (and Portugal and Ireland getting some too).

Didn't this amost render the euro worthless though? I may have heard wrong, but if I am right about that, well, obviously a greater loan would be needed here, which may not even be viable.

I'm not an expert on the issue, but I don't think so. The euro certainly hasn't lost much value, if that's what you mean. They are indeed discussing a second loan for Greece, though.

Computer: 1
Greece: 0

http://blogs.reuters.com/felix-salmon/2 ... -defaults/

All hail our new ominous blinking overlords!