I mentioned earlier about the non-resolution not in, but over Greece and the market disappointment.
Currently, it feels very strange watching this entire charade go down. Greece makes cuts in its budget, but has “problems” implementing them. When they get squeezed hard enough by the Troika to actually do something (anything?) about it and get enough cuts done, their GDP falls faster than expected and sees downward revisions making the rebound all that much harder to achieve in nominal terms, meaning that they get ever further away from the IMF “sustainability” goal of 120% debt-to-GDP in 10 years time. Germany is then Not Pleased.
So although they do all they can when absolutely forced to, the rest of the Troika is left debating what to do about it. During this process more concessions are squeezed out from the country, then finally it goes to EU deliberations before finally approving aid to Greece. Where news tonight hit the wires that no one knows how to fund this process. Fine, they have lied their way to concessions before, but now when said money is being withheld, the EU/Troika hold all the cards, and they aren’t really giving Greece a fair shake either.
The recent push for interest payment deferral for 10-15 years, and the return of SMP profits on Greek Government Bonds back to Greece are like peanuts to an elephant given the deterioration of Greece’s economy, not to mention its finances. Why not actually starting by making this farce a little bit more transparent and at least let the EU buy itself the higher ground and clean slate for future negotiations with Portugal and Spain with the few billion euro’s concerned?