I'm just listening to a BBC World Service programme which was mentioning the Greek (sorry it said Geek before!) financial crisis. It was promulgating the accepted position that it would be disastrous if Greece defaulted, they say it would mess up Ireland, Portugal & possibly Spain.
I'm not so sure. Several years back Argentina defaulted big time on its loans, & nothing too bad happened to it.
Maybe conventional economic theory is wrong? Maybe the 'Market' is wrong (an article in New Scientist once stated that stock market traders modeled like sheep)?
Maybe economics only works in a closed system, like thermodynamics. But possibly either the system is not closed or other factors are skewing the system.
Maybe it is a Chinese 'Face Trap'?