176. Minouche Shafik — What We Owe Each Other: A New Social Contract for a Better Society
The Michael Shermer Show
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How Does a Country Go Bankrupt?
Greece is a perfect example where i the greek economy had been cushioned as part of the european union. It was able to borrow very cheaply because it was part of the ureau, and was able to borrow perhaps more cheaply than it would on its own standing. At one pointt that, as you say, effectively it sort of bankrupt it. And so they stop paying their debts, ah, but nobody will lend them new money. Then there's a process of which by which the people you who had lent you money in the past usually take what is referred to as a hair cut in the business. They might not be paid al you know, they might not
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