Greek Bankruptcy or Inappropriately Reward High-Risk Lenders?

Unless Greeks and the Greek government demonstrate that they have changed their profligate financial behavior, and also demonstrated they have changed their attitude to continuing financing of deficits by increasing borrowing, it will remain in the wider interest of the Euro Zone to allow the Greek government to go bankrupt. It would be fatal, in the longer run, to encourage others to follow the Greek example, and to inappropriately guarantee funds lent as high risk funds charging high interest rates.


Refs:
http://online.wsj.com/article/SB10001424052748703465204575207662667002760.html?mod=WSJEUROPE_newsreel_markets
http://online.wsj.com/article/SB10001424052748703465204575207662667002760.html?mod=WSJEUROPE_newsreel_markets#articleTabs%3Dcomments