As long as Greece remains in a "should we stay or should we go" mode that only increases the uncertainty.
Since there is no way in this reality that Greece will ever make good on their loans, then it seems to me the best thing in the long run is for Greece to formally default, get out of the Euro, and allow their currency to fall to the abysmal level it deserves.
Lots of investors will lose their shirts, while others will make out like bandits. But in the end, certainty will return and things should stabilize.
Of course, if Portugal and Italy and Spain start thinking "Why don't we do that to?" then the uncertainty will remain, but at least keeping three countries afloat will be an easier task than keeping four deadbeat countries afloat.
One of the chief problems is giving the social market economy any credibility to begin with. Of course, since the liberals are fine with trading with communists, such a socialist-lite setup must look like nothing to them by comparison.
The EU was just fine with creating this “beneficial crisis” though. Enough people were warning it was coming. Greece, like Portugal, Spain, Ireland and Italy, had their resistant governments toppled and replaced with politicians willing to take the bailout “loans” even in exchange for the draconian and even immoral terms that came with them.
“Since there is no way in this reality that Greece will ever make good on their loans, then it seems to me the best thing in the long run is for Greece to formally default, get out of the Euro, and allow their currency to fall to the abysmal level it deserves.”
No way they will ever make good on their loans,,, hmmmm. Gosh that sounds familiar,,,
“Since there is no way in this reality that Greece will ever make good on their loans, then it seems to me the best thing in the long run is for Greece to formally default, get out of the Euro, and allow their currency to fall to the abysmal level it deserves.”
The only way Greece can keep its socialism is by remaining on the EU’s teat. They won’t exit as then they’d have no money to give away the wildly out of kilter benefits. The present government was voted in to keep the milk pouring.
Europe either keeps pouring or they give up their visions of a new empire run by unelected serve-for-life socialists who would rather spend the money on themselves than Greece. The EU will give in so the elite can keep their milk pouring. Germany will suffer as their elites aren’t ready to give up their expected payout.
The Greeks politicians have no incentive to give in. If they stay on their imposed diet they’ll be lynched. If they kill the cow that gives them milk they’ll be lynched. Europe, like always, will give in to blackmail.