A Quick Summary of the Greek Debt Crisis

June 29th, 2015 by Rick Drain

Seven pages counts as “quick” for a topic as complicated as this. It’s a very readable and good summary, in that it touches on blame for all, not just for one.

  • Yes Greece did borrow too much for too long.
  • The 2010 “rescue” of Greece actually rescued the non-Greek (mostly French and German) banks. Greece remained insolvent and should have defaulted then.
  • Economic concessions Greece made then have made the situation worse, decreasing GDP by 25%
  • Greece really can’t pay the all the debt back on anything like the schedule that the European hardliners are demanding. Really, can’t. Not possible.
  • It’s not clear what’s next.

A Primer on the Greek Crisis: the things you need to know from the start until now

by Anil Kashyap; University of Chicago, Booth School of Business

June 29th, 2015