It seems to me Soros would rather see a Euro devaluation event than a sovereign default event. Because to me, the currency will have to be devauled if Greece is given a subsidized loan as he suggests. There will be pain one way or another, it’s just a matter of picking your poison.
I also think he’s flat-out wrong. In the end, Greece’s economy is already heading down this path anyway. Why not just get it done and over with to start the necessary re-building/re-tooling of fiscal policy and governance? It will only be more painful the longer they put this off.
Great post, btw. Really enjoy reading your blog.