Greece on the BRINK of COLLAPSE ?

Sunday Telegraph: Reports that Greece could be the “ ..first European country to default on its debt in 60 years..”. As noted in the London Times yesterday folks hedge funds have bought Greek debt and are betting on its failure, as the article notes these debts are insured, thus if Greece officially defaults the hedge funds will be laughing all the way to the bank, thus in many respects they don’t have to do a lot, just say NO to any hair cuts in the debt that they hold, if that happens there will be no deal, the Troika wont give any more money to Greece and then Greece falls over a cliff. As this blog has stated, that would be the best thing for Greece even with the austerity packages over years it will still have 120% debt to GDP. In other words folks, lot of pain and Greece will still be in pain, the EU/IMF/ECB has to cut Greece off, it’s a drug addict, it needs to go cold turkey, its harsh folks, but it’s the only way for Greece to move on, otherwise its just back and white 1950s austerity for nothing at the end of the day.