Greece will default but stay within the EZ. That's my guess and where consensus seems to be heading. Comes down to politics now. Who losses what etc. and how can Greece be restructured so it doesn't look like they got preferential treatment so in the future any other countries with issues don't go down the same route. Short term they'll be some issues as to how to refloat the Greek banks, certainly will mess with ECB's QE programme and periphery countries may see higher bond rates as fear of contagion reignites.
Politically it will be a nightmare as Europeans realise that the majority of the Greek debt is owned by tax payer funded vehicles eg ECB, IMF, etc. etc. So essentially it's another bail out. Long term it sets the blue print for other countries, those with high and unsustainable debts to vote in far left governments whose agenda will be to get debt forgiven.
Funny thing is, Mexico just released a 100 year government bond denominated in Euro's. Can't see the EZ being around in 100 years time let alone 20 , that's if your alive in 100 years time to redeem the bond.
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