Didn’t we say that Greece would get a bailout? A number of times in the past month actually. It’s really no surprise and since most of the attention in the markets remains on the Greekdebt crisis – the more the rumors spread of a bailout the better the markets will trade. All in all it’s still not good to bail them out, but hey, what can you do Europe right?
Martin Feldstein, an analyst for the EMU recently wrote this note:
Greece will default on its national debt. That default will be due in large part to its membership in the European Monetary Union. If it were not part of the euro system, Greece might not have gotten into its current predicament and, even if it had gotten into its current predicament, it could have avoided the need to default.
There simply is no way around the arithmetic implied by the scale of deficit reduction and the accompanying economic decline: Greece’s default on its debt is inevitable.
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