This is a very powerful article from Wolfgang Manchau in the FT. It’s a must-read. Check it out!
The author concludes that Greece must stand firm. He suggests that the best option would be for the ‘whole Eurozone to abandon the failed policies of the last five years’. The second best option, ‘for Greece at least, would be a semi-exit with a parallel currency and a default on official creditors’. There is some interesting discussion of the parallel currency, and how this might operate.
So are we really looking at Germany being forced to take major loan write-downs and eat humble pie?