@ The deal and Sparkly.
If Greece defaults, the rest of the world will be in a shit hole like never before and when this happens, the people of Greek would be pretty scared and will eventually start pulling all of their cash from banks and as a result, the government will implement a bank holiday, just the same way they did in America and as a result the banks will be nationalized. Now, for those who lent Greece money in Europe (as in the European banks), they will be affected by Greece since they are incurring nothing but a loss and as a result, there will be massive credit defaults, then banks all over the world refuse to lend credit to each other for they are fearing that it wouldn’t be honored unless they put up their assets as collateral. Now, in the U.S, since they are used to relying on short term debt, there will be major capital shortfalls since the European banks can’t/wouldn’t be able to produce the commercial paper. As for many other countries that have been burdened by debt, they may or might follow Greece in terms of defaulting. And it just continues getting worse because if these countries in Europe default, then the European Central Bank goes bankrupt. For those countries that are strong financially, any bailout they may hand out to Greece will be faced with stiff opposition because people are of the notion that Greece’s business is Greece’s business, so why should a country like France or Germany sort them out. Come back to America, Americans are used to spending, not saving and the news that Greece defaulted, no more commercial paper coming from European Central Bank will mean that they (Americans) will resort to saving their money more and more instead of spending it hence back to a recession even though they are not fully out of the woods yet. As of France and Germany, if they are forced to bail out Greece and other European countries that are about to default, then, there would no more free trade in that they will impose tariffs on imported goods and restrictive quotas from other foreign countries and we all know who will be affected: Asian economy. So, now we have the Americans hoarding their money will the some European countries become protectionist and that s when Asian economy especially that of China starts showing cracks on its walls. If Greece defaults, then the American congress won’t hesitate to raise the debt ceiling for government spending.
And that’s how Greece is so important in all of this charade.