How much recession can Greece take?

Overnight, Lucas Papademos gave Athens a brutal choice: either it signs up to tough new austerity measures, or the country will be plunged into default.

Investors are again being haunted with the prospect of a disorderly Greek debt default, as Greek political leaders dig their heels in and resist tough new austerity measures that are being demanded as the price of the country’s latest €130 billion ($US170.6 billion) bailout.

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