[MontaniSemperLiberi]

I think they are past the point of choice.

With tax revenues shrinking as the economy shrivels, debt is likely to rise to an eye-watering 173 percent of GDP in 2012 from 162 percent this year. To illustrate the speed of the deterioration, the IMF based its May 2010 bailout of Greece on forecasts that gross debt would peak in 2012 at 149 percent of GDP.

Even an objective dispassionate person can't figure out what choices need to be made. Do they put all people drawing a government check at poverty level? 80% of poverty level? Cut off all people who can work more than four hours a day? Tax earners 20%? 40%? 60%? There's no way to tell because economic models don't work when conditions are so sensitive to bond holder sentiment.

They are going to have to default and let things ride. It will be every family for itself and those without family will go.

[BobL]

“They are going to have to default and let things ride. It will be every family for itself and those without family will go. “

I agree that they will default...but I’m not as sure that they MUST default. But it doesn’t matter - they cannot change. And yes, it will be an interesting case-study to see what happens after they default.