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July 1, 2015

Argentina Shows Greece There May Be Life After Default

Greece Protest ARIS MESSINIS via Getty Images

At last, after years of blackmailing Greece and demanding ever more austerity that led to a catastrophic economic depression, the Troika has finally pushed the country into the brink of default. The situation has some important similarities with Argentina's 2001 default -- and some differences as well. In both countries, recessions turned into depressions as a consequence of austerity policies -- making the debt even more unsustainable. In both cases, the policies were demanded as a condition for assistance. Defaults are difficult. But even more so is austerity. The good news for Greece is that, as Argentina showed, there may be life after debt and default.

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