The problem facing Greece is that because they are part of the Euro they do not control their own currence and therefore cannot print themselves out of this crisis. Their 10 note are are ready 14% and they still cannot sell them, after defaultig on the IMF loans they will not have anyone to buy their debt regardless of the rates they offer.
Greece accounts for less than 30 basis point of the EU GDP so I don't see how they failing would cause too much disruption with the rest of Europe. I think it would be a slap in the face of countries like Spain and Portugal and Italy, who have worked hard to get their economys back on track, to forgive Greece's debt and ir send a terrible message to those counties.
I can't believe it. I can't believe it. Football. Bloody hell.