The plain truth is that this is not about saving Greece; it’s about saving the Eurozone. Brussels is terrified that Grexit might start a Club Med stampede for the exit. Monetary union has been a catastrophic failure, and we are witnessing its death agonies
The general opinion amongst the chattering classes is that the new Greek PM, Alexis Tsipras, has got himself into a lose-lose situation. If he does a deal with the hated Troika, the IMF, ECB and EU, he is dead meat. His political support will evaporate overnight.
If he doesn’t, the Greek economy will collapse and Greece will have no option but to default and exit the Eurozone. Both views are wrong. To demonstrate this does not need the expertise of a Nobel economics laureate.