Does it really matter it is exactly the same outcome however they do it. All that will happen is that the people who invested in Greece will not get their money back. It doesn't matter whether they are in the Euro or not that loss is maintained.
All those euros went into their big fat greek government spending programs. Now they can get ready to use drachmas.
no, necessarily. it depends on how solid the drachma becomes. If the greeks were to show that they would have a balanced budget and not print extra drachmas. The govt could get out of debt with one big print... The greek people would then pay back in Euros after they exchanged Drachmas. The exchange will be onerous if the govt debases the currency... but if they do not... it might work out better. -- it will be same issue every other contract has implicitly or explicitly... sovereign and currency risk. what you and everyone else senses is that greece will debase the hell out of their currency instead of balancing their budget.
No the Greeks have to borrow money to pay off the existing debt. So far they have borrowed from the EU to do so. They cannot do that if they leave. This means they will have to print money to pay off the debt, which means the currency will devalue and it will be like default. The first people that get paid will get something until the value collapses.
They start up the drachma. They pay off the debt with their first print... then we see what happens. It won't necessarily devalue... it depends in part on if they run a balanced budget or not. it depends on investor expectations. it depends on interest rates... and sadly it probably also depends on if they bring in the central bankers from london, paris and or the U.S.