Here’s one solution to the eurozone crisis: Greece defaults and leaves the eurozone, returning to the drachma, enabling it to weaken its currency to compensate for any future lack of competitiveness (or strengthen in response to excess competitiveness). Existing creditors of the Greek government form an orderly queue and negotiate the existing debts. And holidays to Greece become cheap again.
What does this have to do with PermaBusiness? Not much. It is a different way of sorting out who pays for the debts that have been incurred.
Michael Cembalest of JP Morgan recently used Lego characters to demonstrate where different entities think the debt burden should fall. His approach is amusingly summarised in a blog here, and the original research note is here [September 2012: this linked page has been deleted from the Internet].
This piece in Reuters also describes the latest (18 Sept) state of discussions on who will take the hit for the Greek government’s spendthrift ways.