The "collapse" is due to austerity. A nations inability to borrow at levels necessary to maintain (let alone expand upon) previous levels of expenditures will lead to negative shocks in unemployment.Most of the collapse is due to private held debt.
Nonsense! Their error in judgement was in having a non-functioning tax scheme. Their error in judgement was in running fiscal deficits during periods of economic growth without the mechanisms in place to prevent credit market backlash in the event that net capital inflows dry up.Their error in judgement was in entering the EU.
Sure it would be nice for them to flood drachmas throughout the forex market thereby inflating away much of their debt obligations. However, Greece would never have reached previous levels of economic growth without EU membership.