The program [to save Greece] has failed totally. It has nothing to do with the weaknesses of Greece. It has failed because of the nature of the program itself. It was badly thought out and badly applied. What is causing in Greece is economic devastation and social devastation. Unemployment is at 20%. There are networks of barter emerging in the poorer areas of Athens. The hospitals are collapsing. There are people going back to the countryside. The program is untenable.
The solution is pretty clear. Greece will have to default. It cannot carry the incredible burden of debt imposed on it at this stage. It will have to default in a democratic and sovereign way. Then it will have to leave the euro.
Default is basically of two types. It can be led by the creditor or the debtor. Default must be led by the debtor in this case. Greece needs 70% or 80% writing off of debt.