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That is true as far as it goes, but also beside the point.

The reason - the only reason - that Greek sovereign debt is unsustainable is that Greek foreign debt is unsustainable, because Greece has a persistent, cycle-averaged foreign deficit in excess of any realistic growth rate for a European economy.

Currency crisis, not debt crisis.

- Jake

Friends come and go. Enemies accumulate.

by JakeS (JangoSierra 'at' gmail 'dot' com) on Mon May 23rd, 2011 at 09:07:15 PM EST
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And because the ECB and the Eurozone treat intra-Eurozone debt as foreign debt.

Economics is politics by other means
by Carrie (migeru at eurotrib dot com) on Tue May 24th, 2011 at 01:42:17 AM EST
[ Parent ]

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