What happens when Greece defaults. Here are a few things:

• Every bank in Greece will instantly go insolvent.
• The Greek government will nationalise every bank in Greece.
• The Greek government will forbid withdrawals from Greek banks.
• To prevent Greek depositors from rioting on the streets, Argentina-2002-style (when the Argentinian president had to flee by helicopter from the roof of the presidential palace to evade a mob of such depositors), the Greek government will declare a curfew, perhaps even general martial law. …

We made a distastrous tactical error when we decided to choose the interests of the bankers over the people. Europe does not have to take that same route. We have not admitted that the system is flawed and in dire need of restructuring. And the result is that the world’s largest economy has an economic “recovery” with a laughable 9% unemployment rate and an economic strategy that is based on the same gimmicks that helped cause the crisis. Europe needs to recognize what the markets are telling these leaders that there is a structural flaw at work here. And it needs to be fixed.