Silly us

This explains so much, don’t you think? Louis Woodhill in Forbes:

With debt equal to more than 150% of GDP and a rapidly contracting economy, Greece must choose between declining the EU/IMF bailout and defaulting now, or imposing more austerity, getting more loans, and defaulting a few months from now. So, why would the Greek government choose to go through all of this agony just to buy a few months? And why would it want to pile on more austerity when what is needed is a program for economic growth?

It could be because Greek elites have not yet moved all of their capital out of the country.

Greek banks are frantically borrowing euros from the ECB, using Greek government bonds (valued at par, not at market) as collateral. These ECB loans make it possible for Greeks to withdraw euros from Greek banks and transfer them abroad. The moment that Greece defaults, its bonds will no longer be eligible for use as ECB collateral, the Greek banking system will collapse, and this process will screech to a halt. Greeks with money may not want this to happen—at least not right now.