Is the price of a new Guzzi about to get a lot cheaper?

[LowRyter]

The Greeks have already suffered a lot of pain by "internal devaluation." They've kept the � as their currency so they've had to cut their wages and benefits to some extent to try to become competitive.
I believe their output hasn't started rising yet so I guess they're not yet sufficiently competitive.
They can take further cuts which of course increases the pain or they can change the currency and let the new one find its equilibrium where the Greek wages as expressed in their new currency are competitive. That too, of course will be painful as all imports will be more expensive for them. There's no quick and easy fix here.
As for the Greek debt that's another matter. If they're unable to pay, lenders will have to suffer somehow. But I understand their tax collection could be improved substantially.

well said

[Lannis]

they can print their own currency and restructure debt.  It's beginning to look like their only choice. 

It won't be easy.  The Euro is exacerbating their un-payable debt and depression.  The Troika has made them an "offer they can't accept".  (NYT, Krugman)

Greece should have defaulted and gone out of the Euro earlier instead of drawing this out over 5 years.  They should've never been in the Euro currency in first place, there was no way their economy was ever strong enough.  Same is true for Portugal and Spain.

Their only hope is to get out of the Euro, restructure debt, grow and reform their economy.

I'll go along with that.

HOWEVER, if government corruption is siphoning off billions of euros, it'll siphon off billions of drachmas and they'll have to fix that, and that's not easy once it's institutionalized.

And if people have gotten used to unfundable benefit and pension plans based on past pyramid schemes, they'll have to get "un-used" to them and get to work.

At any rate, they've got a long, rocky row to hoe.

Guzzi content: Greek euro default -> Impact on EU -> devalue euro relative to dollar -> Guzzis cheaper in euros to US -> Better deals for US ->more exports of Guzzi = improve EU/Italian economy = Buy More Guzzis!

Whew!

Lannis

[LowRyter]

Testarosa had a great idea, cheap Greek vacation.

[Lannis]

Testarosa had a great idea, cheap Greek vacation.

And you'd be carrying real money there and leaving it; they'll need it!

Lannis

[LowRyter]

win-win, Lannis

[molly]

We are in uncharted territory at the moment with Greece and no one can accurately predict the outcome of the impending default on it's debts. In reality Greece cannot pay back it's loans so it is a matter of dressing up a deal that the Germans etc. can sell to their voters which will not be easy. What is for sure the situation will drag on for years whatever the next few weeks bring.
The fundamentals have not changed, the Euro one size fits all currency union cannot be sustained without ever closer economic and political union which the U.K. and a few others are trying to resist hence the in/out referendum due here (UK) in 2017 which could go either way causing even more damage to the EU project.
In the mean time visitors to Greece have been advised to take plenty of euros in cash for their holidays because the cash machines and banks can no longer be relied on. Tunisia has become a no go zone which all adds up to a uncertain holiday period for many here in Europe.

[Furbo]

A ton of working class Italians would LOVE LOVE LOVE to get out of the Euro and have their Lira back. 

If for no onther reason than to quit carrying so damn many coins around!!