BBC News
June 21, 2011
Who loses most from a Greek default? The common wisdom is that the biggest losers would be the Greeks themselves.
But, as my colleague Robert Peston noted, a Greek default would be no walk in the park for the rest of the Eurozone either.
In fact, though it suits European ministers to suggest otherwise, it could be argued that it's the rest of the eurozone that stands to lose most from a Greek default, which is why they are about to bail them out a second time.
For Greece, the reality is that all the options from this point are bad, but default only looks like the obvious worst option when you don't bother to compare it with the realistic alternatives. Otherwise, you might say it was a close-run thing.
Charles Dumas of Lombard Street Research is one who thinks that Greece would be better off defaulting AND leaving the Euro. What is more, he thinks that this option would probably be better for banks and other holders of Greek debt as well.
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