Greece

Sovereignty is the main problem being faced in Greece. Greece has been a sovereign nation for thousands of years and despite any national debts the Greek people will likely be sure their nation will stay sovereign no matter what. Remember when people went underwater with no hope of repaying their loans or getting out from under those loans? People en masse just started walking away from those loans. I think that the Greek people won't let what is happening happen and we are going to see something similar to people walking out form under their home loans happen to a whole country. The alternative might be the trashing of Greece by their people in order to keep their jobs, homes, and pensions. When you take away the capacity to survive as a people you end formal agreements by these actions. There is business and there is survival and they are different. Survival trumps business in a situation like this. The world and europe in specific is on a slippery slope in regard to Greece. The Greek people are proud from thousands of years of culture. Likely they won't stand for having their throats metaphorically slit and their livelihoods ended by this deal. I think you are going to see the Greeks walk away from their underwater loans. What that will cause is unknown much like Lehman Brothers.

One need only look back to the 1980s when Argentina and Mexico, and possibly other Central and South American countries defaulted on their loans from the U.S. and caused the Savings and Loan Crisis in the U.S. You will notice no savings and loans longer exist here in the U.S. and many in the U.S. were completely wiped out of their savings and some committed suicide here as a result. FDIC was one of the protections instituted as a result. And it has been even extended and increased because of what happened after Lehman Brothers.



I could be completely wrong about this in regard to Greece but if I look at human nature this is the likely outcome from both looking at human nature and my  intuitive hunches.

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Euro zone warns Greeks on sovereignty and privatization