In October 2011 the "leaders" of the Eurozone assured the world that the Greek debt crisis was resolved, and that Greek bondholders had accepted a 50% haircut.
As I noted then:
".. there are some "issues" that may well unravel this sooner than the "leaders" of the Eurozone would like".
What a difference a few months make!
Moving forward to the present day, we see Greek finance minister Evangelos
Venizelos has been addressing parliament. Greece failed to reach an agreement with its international creditors on
He is still prattling on about doing a deal with bondholders (the deal that the world was told was finalised last year) and has reiterated that he wants any debt swap with private sector bondholders
to be voluntary.
"The "haircut" is, despite the spin (seemingly, according to the Euro
spin machine the "haircut" is voluntary, therefore it is not a
default!), a default.
Does this matter?
Yes, it does matter.
By defining it as not a default, the Eurozone has null and voided
sovereign hedging via CDS (this has not gone down well with those who
hedged against default)."
No one believes the Eurozone "leaders", most especially the Greek "leadership", anymore.
There will be no deal, and Greece will default.
As I noted in October last year, Greece is a busted flush.