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This is why more loans will not help Greece, and many of the other relatively unproductive countries. They need equity, not debt. More debt given to an overly indebted country can never lead to good things. Greece will get its equity either by defaulting or restructuring. It cannot print, thereby that quasi-equity machine is lost to them.

Several other countries have similar problems. The catalyst, if there is to be one, will be when the sovereign debt is devalued to the point where one bank has to call in a hedge or take a loss that was never economically there in the first place. Then I can see the daisy chain start to unfold.