“Greece should default big”

The sovereign debt crisis is wrecking havoc in Europe right now and many believe it is only a matter of time until Greece and possibly other PIIGS countries default.  German Chancellor Angela Merkel stated yesterday that she would do whatever it takes to stop a Greek default because “the risks of contagion are too big.”  According to this article Mario Blejer (former advisor at the Bank of England) thinks Greece should default big.  I think I agree with him.  I know there are many variables that will determine how this unfolds but the longer Europe drags this out, the more a Greek default seems inevitable.  What do you think?  Should Europe do whatever it takes to prevent default?  Is it even possible to reign in the amount of debt of the PIIGS countries?  I think it is time to quit dragging this on and bite the bullet.

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