As both Greece and creditors go to the wire, I fear that it’s the Greek Prime Minister who is taking the largest risk, viz. Greece defaulting and out of the Eurozone this month, and destined for ten years of Argentina-like hardship.
Clearly, both sides are being intransigent. Creditors are right to demand economic reforms and confidence that Greece can repay additional loans. Meanwhile, Greece has a point that previous deals were too draconian. However, I fear that the Greek Prime Minister is not helping his position with his rhetoric.
If you look at the foreign exchange markets, a Grexit in June seems increasingly likely.