Everything You Need To Know About The Greek Problem In Europe

This article, by an economist from the Booth school at the University of Chicago, does a nice job of describing the debt problems in Greece and the implications for the eurozone.  The situation was not well handled by the IMF or by European leaders.  Greece had not managed its economy very well and it did not have the resources to service its debt.  Much of its debt was held by large banks in Germany and France.  A decision was made to bail out these banks in 2010.  Things might have been different if those funds would have been used differently.  The IMF made a loan to Greece 2010 that has now become due.  Greece does not have the funds to service that debt but the IMF is not in a position to  accept a loss on its loan.  What happens next is anyone's guess.