It is hard to see how Greece can repay it sovereign debt if its economy keeps shrinking.

According to several media reports including MarketWatch, “Greek gross domestic product fell by 1.5% in the second quarter compared to the first three months of the year, the nation’s statistics office reported Thursday. Compared to the second quarter of 2009, GDP shrank by 3.5%. The quarterly decline follows a fall of 0.8% in the first quarter. Greek GDP has fallen for seven consecutive quarters.”

Douglas A. McIntyre