The Euro is doomed, toasted…even if and when a temporary solution is brewed for Greece. It is pure, genuine mathematics…Now debt-to-GDP is 175%. If the Greeks couldn’t pay their debt at 120%, they have zero chance of paying it at 175%. The fact is that the Intelligent Psychopaths (you name them, don’t forget those who passed away) have over the past months and years actually made sure that the Greek situation would get worse instead of better…
One need not be an Einstein to forecast the Grexit negotiations would break-up. There was never any doubt in my mind the Intelligent Psychopaths would need more time to realize they have no alternative…and/or if they realize it, to play their game all the way to the last moment. The danger being that something unplanned could happen…Intelligent Psychopaths are playing with matches in the Powder Room.
“We have one way, a reasonable way, a way which takes into account the vote of the Greek people: it’s what we call a technical extension, with flexibility and the possibility to change some elements of the previous program,” French Finance Minister Michel Sapin said after the meeting. “It’s the only reasonable way forward.”
What are the chances of Greece’s leaving, either willingly or unwillingly? After the speech Tsipras gave today, I think it’s a 50-50 thing. Tspiras and Varoufakis seem to believe that the risk of a major Eurozone crisis if Greece leaves is a big enough threat to force Europe to fund them in order to avoid it. The biggest losers would be the European Banks (and probably also Goldman Sachs).
Important Fundamentals:
