Excepting a miracle, Greek default saga draws to a close
That pretty much sums up the options as they are.
At the moment, it looks like PSI will get over the legal barriers (50%) and the CAC [collective action clause] barrier (66%) but will not achieve the total of full voluntary participation (95%) which leads to a credit event, essentially technically defaulting Greece. Deadline for participation is at 3pm EST.
This is of course excepting a sudden miracle of participation or some legal fudge somewhere along the line. If this occurs, it only delays the inevitable anyway.
It's not a disorderly default, though there are still other unknowns that may drag out the process. After all, this is the end of the Greek default saga, but not the Greek economic depression saga - blocking minorities with deals, foreign law bond difficulties as well as the Greek elections next month all could be factors. Regardless, Greek misery will stretch on for some time yet.
Still, it means Europe can now look to another country (which is what it should've been doing anyway) and try to stem the bleeding. Next stop, the Iberian peninsula.
Re: Excepting a miracle, Greek default saga draws to a close
Thank u for this post. I've been talking about this for over a year and the last
quote I posted from Greece said, "the wellfare state is over.''
Irish Raven coined the term PIIGS pertaining to Portugal, Italy, Ireland Greece and Spain so the Iberian peninsula could certainly be next.