Photo: Critica Digital
The guy who managed Argentina’s default in 2001, Mario Blejer, says Greece should follow suit.He told Bloomberg:
“This debt is unpayable. Greece should default, and default big. A small default is worse than a big default and also worse than no default.”
“It’s totally ridiculous what is going on. If you assume that these countries do everything that is in the program, they do all these adjustments and privatizations, at the end of 2012 debt-to-GDP will be bigger than this year.”
Default and currency devaluation actually worked for Argentina in 2001. After shrinking 11% in 2002, the economy boomed for nine years thanks to rising commodity prices and regional growth.
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