Greece – who cares?

1) Eu growth slows demand for US products
2) Depreciated euro will compete in exports with US/China
3) Will capital markets crisis devolve into 2008 style crisis? Niall Ferguson

When gov outspends taxes choices
-sell debt to private investors
-default (in 3yrs?)
-transfers from other gov (145bn bailout)
-inflate away value of debt by selling to central bank print money (ECB buying Greek debt)

Greece has funded large CA deficit with capital account surplus which is savings of other countries vs Japan who funds their large debt/GDP with their large savings rate