Just a mid-day roundup on what the blogs are saying on Greece. Unibet offers a bet that Greece is not euro currency user by the end of the 2012, multiplier 2.65. Not a bad bet. EDIT: articles added.
Papademos meets creditors as ‘sacrifice’ looms – ekathimerini.com
Greek Prime Minister Lucas Papademos plans on Tuesday to discuss with the nation’s political leaders the implementation of additional fiscal measures needed to secure a second European Union-led bailout.
Greeks delay bailout talks as Merkel demands action – Reuters
German Chancellor Angela Merkel told Greece Monday to make up its mind fast on accepting the painful terms for a new EU/IMF bailout, but the country's political leaders responded by delaying their decision for yet another day
Greece Working on Final Draft for Leaders Meeting, Official Says – TF Market Advisors
LEAVING EURO
“Grexit” – alphaville / FT Greece Working on Final Draft for Leaders Meeting, Official Says – TF Market Advisors
Then what? Rumors that 20 billion or more of bonds won’t agree to the PSI (that is only 10%). Rioting in the streets? (those ungrateful people just don’t understand the need to sacrifice themselves for the greater good). Then we wait to see the reforms fail?
LEAVING EURO
Citi thinks a 50% change Greece leaves euro, earmarking bailout funds, Greece re-examines default option, while Germany does not budge.
Perhaps euro-zone leaders are counting on this shifting leverage—a much worse outcome to exit for Greece than for the single currency—to help them drive a hard bargain. It is no sure thing, however. There is a serious risk that officials are overstating the extent of Greek containment;
Greek Tradegy edges towards the worst solution – Capitalists@Work
Staying in euro but defaulting on debt would be the worst option – a new banking crisis in Europe, and Greece still not competitive and thus not sustainable.
A devaluation, properly organised, merely acknowledges losses already recorded by investors in Greece, whilst starting the process of adjustment necessary to rebuild the economy.
Comedy: what would happen if Bristol decided to leave the British pound.
BLOCKED ACCOUNTS
"We propose that the interest on Greek debt is placed in a blocked account that will also guarantee that the debts of our Greek friends will be paid," French President Nicolas Sarkozy said during a joint press conference with German Chancellor Angela Merkel in Paris.
The fear among the creditor states of the eurozone was that irresponsible Greek politicians might use any new money to pay civil servants and pensioners rather than bankers and hedge funds.