Why Greece's spillover across euro area will probably be contained this time

[Petertan]

once greece default on payment is not their problem anymore, the problem is the people holding on to greek ious, the bondholders themselves could already be leveraged to their eyeballs back stopping the greek debt will there be a run on them too?

You are wrong. If like that everyone can simply borrow huge amount of money and then declare cannot pay. Where got so simple?

If they do that, immediately the next morning when they wake up, they will find themselves in the toilet for the next 15 years. And their currency will be like unto toilet paper for the next 15 years.

If you think it is easy, try to borrow from the bank and do likewise, see what happen?

If you a bank or money lender lend money to a king, he play you out later don't pay you what you can do to him? sue him? arrest him? whack him?

For individual and corporate it applies but how you force a country a government or a king to pay if they play you out? Basically either take up guns go to war or "L L"

but then again in the case of greece the lenders are already very reluctant to keep lending anyway as seen by the quantative easing they been doling out recently in preparation in case something like this happen whether are these efforts are adequate to mitigate the fallout thats comes after or not.

Yes when greece default they go to the toilet and become a financial pariah - but only for a while, a few years ago I will agree with you but today not everybody will against them there's options once they regain their currency things will stabalise within 2-3 years the russians have need of new friends and new trading partners will welcome them with open arms, then there's also China's AIIB brics bank coming online quite eager to show they can be the alternative to IMF and world bank.

2 to 3 years? so easy, now you go to Greece and become their citizen. And you tell them this. I believe they will make you a foreign or Finance Minister. Because you can talk very well. LOL

It's already happen something like this in iceland. when iceland defaulted in 2008 this happened. In 2 years they stabalized internally basically when they didn't have to worry about being hounded by creditors they could focus other things and sort out their problems they went back to their fishing roots, iceland is just a tiny nation of population size of brunei I think greece bigger will take 2-3 years.

see this IMF article
http://www.imf.org/external/pubs/ft/surv...31315a.htm

to add

Argentina a big messy country 4 bigger than greece in terms of population defaulted in 2001 their currency went into the toilet but by 2002 there were already signs of recovery in their economy.

http://www.theguardian.com/business/2011...entina-imf

If anyone can suka suka don't pay, then IMF must be the greater fool. So is the world bank. Everyone is a fool except for you.

Then why not they declare it loud and clear now, why wait? I love to, i am too waiting to buy CES at 20c. LOL