Black Monday: Germans refuse to bail out Greece again

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An honorable member of the Coffee Shop Has Just Posted the Following:

Talks to end the Greek debt crisis are getting nowhere in Brussels with Germany refusing to give way because the debts are too high, the Greek reform proposals inadequate and they can’t be trusted to implement them anyway.

It is going to be down to the heads of state of the 28 European Union nations meeting later today to put the show back on the road. But at the end of the day if Germany won’t pay up, and the next bill is put at $82 billion including back recapitalization, then Greece will be forced out of the euro in a messy divorce.

US cavalry?

Basically we will now find out who really calls the shots in the EU, the Germans or perhaps the United States after President Obama’s last minute intervention last week. Is this really still the post-war status quo with the US pulling the strings behind the scenes, or have we moved on?

We are about to find out. The US sensibly enough considers the downside of a Greek exit from the euro so bad that it is worth spending more on a three-year bailout deal. But then they don’t have to pay up, or face the Greeks again when they fail to perform in three years’ time.

Is it time to pull the plug and remove the Greek menace that way? Perhaps there are other worries like allowing Russia and China to get a foothold in Greece, although surely even they might be a little wary after recent experience.

Black Monday

So this goes down the wire to the final meeting. On Friday financial markets assumed the best and rose in unison. This really will be a Black Monday if that proves to have been unjustified optimism, but then in the entire history of the Greek debt saga we have had nothing else.

Maybe the final endgame will be Greece’s ignoble exit from the euro and perhaps the EU…

http://www.arabianmoney.net/private-...-greece-again/


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