Thursday, June 25, 2015

Greece a deal is done... not really

It is strange to consider that little has changed over the past 4 months (May is so far away).  The latest (Sunday, ok Monday afternoon) Greek proposal is still far far away from what the IMF/ECB and Germany want.  In fact, the offer from Greece falls short of a certain "line in the sand".  But more importantly nothing here (and I mean NOTHING) looks like negotiations, in so far that there is give an take from both parties.  All the give so far has been from Greece to get "more money" which by the way helps nothing in the long run.  Greece's problem is that it has too much debt that it cannot service.  Moreover, the Euro8/9 billion on offer will be used to pay interest refinance outstanding debt.

In effect, an accord between Greece and the rest of Europe will only "kick the bucket down the road a little more".  Now don't think for one minute I am not aware that Germany sees a more serious game, if they give in to Greece than Portugal/Spain/Italy will be next -- after all who doesn't want some debt relief?


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