So, what is the big deal here. We have been on a five year Greek news cycle. Why?
Greece's situation is so incredibly simple, you wonder why it is even newsworthy: Greece owes far, far more money than could ever be repaid. The bizarre "bailout" simply postponed, and made much more costly, what has been inevitable since 2010. Greece can't pay its debts. Period. Finit.
So, what should be done. It should go bankrupt in as controlled a fashion as possible. But it should definitely and without question default. From the very beginning it was completely obvious that Greece would default eventually. It should have been done in 2010 when the total debt was half what it is today.
But no, the bureaucratic political leaders -- Merkel, Sarcozy, Bernanke -- decided that "extend and pretend" made more sense. So, at their behest, we wasted billions more in resources pretending that we were rescuing the Eurozone. What a joke!
So now, the Eurozone and Greece is going to suffer far more than would have been necessary had the Eurozone leaders simply offered $ 50 billion in 2010 to all of Greece's creditors to settle $ 175 billion in debt. That would have solved the entire problem in an efficient and intelligent way, leaving Greece in the Eurozone and limiting the hit to German taxpayers. But, no.....enter the politicians.
The politicians have turned a minor problem in 2010 into a major problem in 2015 with Greek debt now more than $ 375 billion with no hope of paying it. So, what is the news here. More politicians deciding the free market isn't the answer...they know better. Free markets have frequent bankruptcies. Bankruptcies are healthy and therapeudic, serving to remind lenders to be careful who they lend money to.