http://noir.bloomberg.com/apps/news?pid=20601039&sid=akPaBtr2i0i0
Extract
Officials in Athens and Brussels are still insisting that default isn’t an option. They should quit pretending.
Greece’s debt position is worsening. Delay isn’t an option. It would be better to impose a 40 percent or 50 percent loss on bondholders this year than a 70 percent or 80 percent loss in 2013.
The government is still reducing spending -- another 22 billion euros ($32 billion) of cuts were announced this month -- which will only depress the economy further. There is very little sign yet that exports can make up for the fall in domestic demand. You can’t just cut your way out of this crisis. At some point, the Greek economy needs to start growing again. So far, no one has explained how that is going to happen.
Extract
Officials in Athens and Brussels are still insisting that default isn’t an option. They should quit pretending.
Greece’s debt position is worsening. Delay isn’t an option. It would be better to impose a 40 percent or 50 percent loss on bondholders this year than a 70 percent or 80 percent loss in 2013.
The government is still reducing spending -- another 22 billion euros ($32 billion) of cuts were announced this month -- which will only depress the economy further. There is very little sign yet that exports can make up for the fall in domestic demand. You can’t just cut your way out of this crisis. At some point, the Greek economy needs to start growing again. So far, no one has explained how that is going to happen.
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