On Fri, Jul 17, 2015 at 12:33 PM, Gar Lipow <[email protected]> wrote:

> And yes, a friendly Grexit that was not devastating to Greece would
> require billions in currency support from the EU - making it utopian in the
> worst sense.
>


Why is this utopian? I can think of many good reasons for the EU to spend
the necessary billions to ease a Grexit.
 - An orderly Grexit is in the interests of everyone in the EU, not just
Greece. To put it slightly differently, a disorderly Grexit would be a
geopolitical nightmare for the EU, not just for Greece. I think the EU
leaders understand this, even Schauble.
 - Everyone knows that the Greek debt needs to be written down and
restructured. A Grexit would be a perfect opportunity to do this unpleasant
task in a way that is politically acceptable to the other countries. You
don't have to admit your own previous mistakes if you can blame all the
losses on the costs of a Grexit.
 - And the best reason of all: once a Grexit is underway, the Syriza
uprising would have already been utterly defeated, so there is no further
political incentive to keep piling on the misery.

Just because it seems like a good idea doesn't mean it will happen of
course..
-raghu.
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