But do you think the poverty and inequality would be less with an outright default?

I'm against an outright default as I think it will just throw Greece into deep chaos and instant all encompassing poverty (if the banks went down).

More commonly it happens through negotiation than outright default.

I would say that on balance outright default is a less bad option than continuing with an "austerity" program doomed to fail.

In addition, we expect S&P to further downgrade Greece into either "selective default" or outright default.

While avoiding the ordeal of an outright Greek default, a "haircut" presents at least two obvious problems.

The most serious risk arises when a war, national disaster or excessive external debt results in a country's outright default and repudiation of outstanding debts.

The prospect of outright defaults, renewed shocks to the European financial system and the breakup of the eurozone is growing.

The most likely is an outright default on existing debt.

The option the county is trying to avoid is an outright default on the bonds, an action that many fear could cut off its access to credit markets.