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I doubt any analyst could figure this out. You have to remember that although Greek debt is now around 144% debt to GDP, the economy has massively contracted (4.5%-5% for at least two years) and so now we're measuring their ability to pay against a crippled economy. The rise in debt to GDP from 115% when this crisis started to 144% is now because of an increase in public expenditures. Greece has actually reduced expenditures.

To what degree might Greece's economy grow in a world in which it's public spending doesn't give the economy a steroid bounce? No one knows. The debt to GDP might as well be 14400% if Greece does not have a way to bounce back strong.

by Upstate NY on Mon May 23rd, 2011 at 10:35:58 AM EST
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