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This strikes me as all too plausible... The greece crisis has been about getting Euro area ready for the default, not actually trying to solve anything... But then wt*dik:
Firewalls In Place, Markets Ready: Greece Can Go To Heck
Luxembourg Finance Minister Luc Frieden said it out loud: "If the Greek people or the Greek political elite do not apply all of these conditions ... they exclude themselves from the Eurozone." All of these conditions. And there are a lot of them. Then he added the crucial words: "The impact on other countries now will be less important than a year ago."
Playing for time had been the strategy all along. Governments established bailout funds. Markets, banks, and multinationals adjusted. The ECB figured out how to circumnavigate its treaty-based restrictions on monetizing sovereign debt of member states. And the national central banks that own the ECB, particularly the Bundesbank, got used to these circumnavigations. The fear of financial contagion has subsided. A kind of calm has set in. And politicians like Friedan see in this calm a sign that markets have accepted Greece’s exit from the Eurozone.
Greece might want to decide that it would be better to exit the Eurozone, rather than actually implementing the budget cuts, Friedan said. Returning to the drachma and devaluing it might create a more competitive economy. "It might be something which would allow Greece to get a new start," he said.
With all the pieces in place, it is now politically correct to admit that Greece is a hopeless case, that its political elite and institutions are such a mess that they simply don’t belong in the Eurozone. This too is part of the procedure of....
http://www.testosteronepit.com/home/...o-to-heck.html
Firewalls In Place, Markets Ready: Greece Can Go To Heck
Luxembourg Finance Minister Luc Frieden said it out loud: "If the Greek people or the Greek political elite do not apply all of these conditions ... they exclude themselves from the Eurozone." All of these conditions. And there are a lot of them. Then he added the crucial words: "The impact on other countries now will be less important than a year ago."
Playing for time had been the strategy all along. Governments established bailout funds. Markets, banks, and multinationals adjusted. The ECB figured out how to circumnavigate its treaty-based restrictions on monetizing sovereign debt of member states. And the national central banks that own the ECB, particularly the Bundesbank, got used to these circumnavigations. The fear of financial contagion has subsided. A kind of calm has set in. And politicians like Friedan see in this calm a sign that markets have accepted Greece’s exit from the Eurozone.
Greece might want to decide that it would be better to exit the Eurozone, rather than actually implementing the budget cuts, Friedan said. Returning to the drachma and devaluing it might create a more competitive economy. "It might be something which would allow Greece to get a new start," he said.
With all the pieces in place, it is now politically correct to admit that Greece is a hopeless case, that its political elite and institutions are such a mess that they simply don’t belong in the Eurozone. This too is part of the procedure of....
http://www.testosteronepit.com/home/...o-to-heck.html
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