Why Greece can't default
They're "too interconnected" to fail:
The RBS economists estimate that the total amount of debt issued by public and private sector institutions in Greece, Portugal and Spain that is held by financial institutions outside these three countries is roughly â?¬2,000bn. This is a staggeringly large figure, equivalent to about 22 per cent of the eurozoneâ??s gross domestic product. It is far higher than previous published estimates. It indicates that, if a Greek or Portuguese or Spanish debt default were allowed to take place, the global financial system could suffer terrible damage.
The ongoing turmoil in the EU is a pretty good reminder that often a nation's biggest enemy is itself. The damage the West has done to itself with its own prolificacy dwarfs anything that Iran is likely to do.
(AP Photo)
