RikH 5pts If Greece goes bust, on the EU and one way or another debt has to be written off by the rest, the issue is that this write off will go via national budgets. Until now Greece debts is not written off (not in relevant amounts anyway). That will be hard to explain in a lot of countries. especially when cuts on local government services will have to be made to plug the gap. The Northern countries but also the east block ones which have lower per capita GDP and less generous governments.Another problem will be who will buy the private sector bonds. Basically nobody, which means that yields would go through the roof and bondprices down the drain. Greece needs ECB backing to avoid that.