By Peter Boone and Simon Johnson
No one in official Washington is seriously worried about Greece. It’s far away, relatively small, and – anyway – “we already sent the IMF”. Under current circumstances, this is very much like saying 2,500 years ago: We sent 300 Spartans to stand against a horde of Persians, so what’s the problem?
The Greek economic situation is worsening fast – with government bond yields rising rapidly today (currently the 10-year rate is around 7.5 percent). Unless there is rapid action by the international community, this has the potential to get out of control.
There are three scenarios to consider: the nightmare, the “savior”, and the decision. Continue reading “Standing At Thermopylae”