Tuesday, July 12, 2011

Admitting the inevitable

The European Union has finally admitted the inevitable, and admitted that Greece will default on its debt:

European leaders bowed to the inevitable and conceded that Greece is likely to default on its massive debt burden, which would be a first among the 17 countries using the euro.

They also abruptly shifted tack in the eurozone debt crisis by raising the possibility of using the eurozone's bailout fund to buy back Greek debt on the markets, meaning sizeable losses for Greece's private investors and reduced debt levels for Athens.

This is a rare display of sanity. Debts that can't be paid won't be paid, and a people shouldn't be crucified in a futile effort to force them to.