|The best thing the EU could do right now is to write down all Greek debt to market, which means writedowns of 70-80% and restructure Greek debt at those levels. And Greece should voluntarily leave the EU and re-instate the Drachma, then inflate their way out of the remaining debt until they can stabilize their economy. Along the way, they need to restructure gov't jobs to pay market rates and raise tax revenue and cut expenditures to balance their budget. It will be painful, but it's the only semi-civilized way left out of this. |
Given the pussy footing of EU leaders, I am beginning to think this may be the best approach.