Greek default necessary but Grexit is not -Wolfgang Münchau – FT.com

The entrance of Bank of Greece.

The entrance of Bank of Greece. (Photo credit: Wikipedia)

According to Wolfgang Münchau in the FT, a Greek default is both necessary and almost a certainty. However, a Grexit is still not assured. It’s a must-read article. Check it out!

via Greek default necessary but Grexit is not – FT.com.

Most critically, it seems that both sides to this negotiation are sleep-walking towards an uncontrolled Grexit.

According to Münchau, there’s not enough hard-negotiating and contingency planning.

Personally, I would expect financial markets to go into free-fall, like 2008, until the central banks, especially the ECB, stomp up eye-watering support. For sure, if Greece takes the Grexit route, it will be decades before the economy of Greece returns to the 2015 GDP level.

Thoughts?

White House urges Greece to reach agreement on bailout terms with the EU | News | DW

Germany‘s leading news agency, DW, focuses upon the White House reminding Greece that time is running out to reach an economic deal.

via White House urges Greece to reach agreement on bailout terms with the EU | News | DW.DE | 17.04.2015.

It’s significant that the US government has supported Germany and the EU, in reminding Greece that Greece must reform for her own good.

Sadly, Greece’s left-wing government seem to be too frightened to go back to the Greek people and seek a new political mandate.

It looks increasingly likely that Greece will start defaulting as the cash runs out.

Any thoughts on what next?

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