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Tuesday, January 24, 2012

The Greek Clusterfuck Negotiations

Despite the hype form some sections of the ill informed media and from the EU, that the Greek deal on haircuts was almost in the bag, reality has hit the fan.

Eurozone finance ministers have rejected the current offer from bondholders, and have "demanded" that negotiations between the Greek government and Institute of International Finance (IIF) reach agreement on a lower average coupon.


The EU seems to be under the impression that it has some control over this and that, like Canute, it can somehow control elemental forces (in this particular case, the markets and economic reality).

The EU ministers want a lower rate than the 4% currently being demanded by the bondholders.

Ain't going to happen without enforcement (ie a default).

Negotiations are turning into a clusterfuck!

There will be no deal.

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