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by gyom 4004 days ago
Well, your house is used as collateral for the loan, otherwise the bank would never lend you that money.

I'm not an economist, but I don't think that, in the case of Greece, the "house" (whatever it stands for) was used as collateral.

I don't think there really was any collateral. I guess lenders just hoped that Greece would pay back, or would be pressured into paying back.