The immediate answer to the question in the title is that what went wrong in Greece was the inability of Greece and its creditors to agree on a continuation of the lending program, which has led to the current very tense situation. Indeed, while both sides had clear and strong reasons to agree, the result, unless there will be a welcome yes at the forthcoming referendum, is that there will be no agreement, with the prospect of Grexit quite higher than the 1/3 I guessed in a post on April 22nd 1). In this post, however, I want to find a different and more fundamental reason of the failure. I will do this by first ... (full story)