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, , The New York Times.
In a full-fledged, Argentina-style default, investors would lose over half their money an option that may be too severe for Greece to contemplate seriously. But even a so-called haircut, in which creditors absorb a relatively modest reduction in the face value of Greek bonds, could have dire consequences for the euro zone and the regions beleaguered banks, which hold most of Greeces bonds.
The milder option would spread out Greeces payments to creditors, who would have to accept a decline in the present value of their investments an option that is starting to look like the best of an array of bad choices.
