Greece Endgame Nears

[TexasTowelie]

By Yves Smith

Despite the market jitters of last Friday, which were triggered in part by the recognition that the odds of Greece reaching a deal with its creditors are far lower than had been widely assumed, Greek-related coverage has ratcheted down, even as Greece seems certain not to get any funds released in the April 24 Eurogroup meeting and is very likely to miss the end of April deadline for getting its reforms approved by the Troika and Eurogroup. Per a Bloomberg story yesterday (hat tip George P):

Greece and its creditors remained at loggerheads with time running out to unlock aid and avert a default.

The sides haven’t even set 2015 budget targets, let alone on policies to meet them, an official representing creditors said Monday, asking not to be named as talks aren’t public. Euro-area finance ministers said in February that a list of measures must be agreed upon by the end of April.

In keeping, Mohamed El-Erian said yesterday in a Bloomberg column yesterday pegged the odds of a “Grexident” at 45% (although El-Erian also conflated a default with a Greek exit, when we have pointed out the first does not necessarily mean the latter; given that the Greek government wants to remain in the Eurozone, it would be the ECB that would be the one to force a de facto Grexit by cutting off its bank system life support, the ELA). Greece’s lenders seem willing to continue pushing Greece into submission negotiating past the old drop-dead date.

But the official enforcers have gotten even firmer in their position: Greece must do its homework, as in prepare detailed reforms, and has to hew closely to the existing structural reforms. Christine Lagarde of the IMF last week increased the pressure by saying it would not give Greece a grace period on its payments coming due, as some had hoped.

Never mind that Greece has actually done more in the way of complying than any other European victim and has also shown the worst economic results. Various European officials have stated that they’d rather not have Greece default but they are not prepared to cut Greece any favors in order to avert that outcome. Making sure Greece complies, in other words, is worth the cost of what they believe will be short-term disruption. And they clearly don’t care one iota as far as the cost in Greek lives is concerned.

Read more: http://www.nakedcapitalism.com/2015/04/greece-endgame-nears.html

[rhett o rick]

1. This is capitalism at it's best (or worst). The big fish are eating the little fish.

Greece will become the new Haiti. Whose next? Spain?

[blkmusclmachine]

2. http://www.rightwingwatch.org/sites/default/files/Wagner%20Dominion.jpg

[TexasTowelie]

4. Thank you very much and welcome to DU!

If you have not done so already, I advise going to the Latest Threads tab and under the blue button that Starts Discussion there is a black bar. Change the first filter to Show: All so that you can see new posts in all groups and forums.

The milestone indicators are for whenever a thread reaches 25 replies and then new every 25 reply increment afterwards.

I'm finally on my first tour of duty as a forum host (all the folders under "Main&quot . If you have any questions, please contact me. DU is stronger the more people learn and participate so we are glad to have you on board.