Yesterday Greece got a fat downgrade of their sovereign creditworthiness rating and the interest they were having to pay shot through the ceiling. Today, it shot through the roof. 17% at the close of trading, down from 26% during the day
People paying 26% on their debts don't necessarily always pay them back. The serious discussion of Greece's default has begun online, and the politicians are ratcheting up the number of dollars they think it might take to bail Greece out.
What needs to happen: Greece gets kicked out of the EU, defaults on its debt, devalues its currency, goes through 3 years of pain, and starts over.
What I think just may happen: Bailouts, then all of the above when the bailouts finally are found to be ineffectual.
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