Why Greece will and should default on its debts
May 16, 2012

(MoneyWatch) COMMENTARY Here's everything you need to know about what's wrong with Greece's bailout agreement: The government is using $571 million from its latest bailout payment to repay in full a group of foreign bond-holders. This is the government of a nation which is bankrupt, has a 21 percent unemployment rate, saw its economy shrink by 6.2 percent in the first quarter of this year, is coping with shortages of food and medicine and whose electric grid is only running because of government intervention.
The repayment is the first step towards repaying the $7.7 billion owed to holders of bonds

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