As of this week, Greece has for the first time officially defaulted on IMF payments, not much, just 1.6billion Euros but that just goes to show how poor they really are! Can't even come up with that small amount.
Greece is currently run by a pretty unstable government which can be easily brought down by popular vote. They can't get anything done whilst pandering to the masses to get their votes. They have now hired a very young CEO with not much experience running the country.
Greece owes the world about €323 Billion Euros worth. That is quite a bit of moolah, considering greece only has a small population of 11million people.
GDP : On a downwards spiral, previously >300billion euros, down to 242billion+ in 2013 and very likely even lower now.
More detailed analysis here on Wikipedia.
So the question is can Greece pay back anything? The answer is most definitely a no, it doesn't take a genius economics professor to come to this conclusion. Without further slimlining of the budget, to ensure a surplus, there is no way to pay back the capital.
Already markets around the world are going down. There should be a bond rout in Europe pretty soon should Greek decide to default on all their debt and start printing drachmas.
So what can we do here in Singapore? Well the smart thing would be to sit back and see the story unfold in Europe and hope markets have a big correction and present a good buying opportunity.
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