Dr Alf is correct, Germany as Angela Merkel has already said will try and negotiate a compromise. This will result in a deal and the Greeks, based on earlier behavior will perhaps default within a year or so and we will be back where we are now.
President Obama and his White House are always making pronouncements and frequently getting things wrong. Soon President Obama, who is a ‘lame-duck’ and ineffective President, will be gone from office and Europe will have to deal with his successor. We should listen politely to President Obama in this instance and then studiously ignore him until he has something useful to say.
Europe needs to reform and transform itself economically but I fear that Greece is not yet capable of effecting such reforms and as a potentially corrosive contagion, she needs to be told that it’s ‘sink or swim’ time for staying in the Euro and possibly the EU.
Whilst I am moved by the plight of Greek children going to school hungry (based on another of Dr Alf’s posts), I am not moved to the point where I want to see more money wasted on Greece as a whole, since there is a risk that she will still default.