Norway + Greece = ??
If busted sovereigns were banks, policymakers would know exactly what to do: fold the bankrupt country into a designated “acquirer” with a strong (or at least stronger) balance sheet, which is then given a package of cheap financing, guaranties, and indemnity (or maybe not) in return for straightening out the mess.
Eventually.
Applying the principle at the sovereign level, why not find a white knight for woeful Greece?
“Good Bank Country, Bad Bank Country”
My candidate: Norway (population: 5 million; sovereign wealth fund: over $1 trillion).
Sure, there may be a language and culture barrier, but think of the appeal of all those balmy, Mediterranean islands to staid, shivering Scandinavians come the winter solstice (sounds good to a Minnesotan, too!).
Greece is the more populous country (10 million), but its $375 billion national debt would barely be a hiccup for the flush Norwegians.
And a nice diversification move away from North Sea oil, the primary source of Norway’s wealth.
Wall Street could even securitize the payments (I don’t see why the 2040 Norway-Greece bond issue shouldn’t be rated AAA. Really).
I have no idea how the combined countries would function (the same can be said of shotgun weddings amongst banks), but, the duo would make for a helluva real estate portfolio. 🙂
P.S.: perhaps the folks who came up with “Grexit” can be tasked with coming up with a similarly engaging name.