Greece on "knife edge" in last hours to agree bailout
(Reuters) - Greece's prime minister scrambled on Sunday to convince lenders and politicians to sign off on a 130 billion euro ($171 billion) rescue, after his finance minister said just hours remain before the euro zone abandons the country to its fate.
A technocrat appointed in November, Prime Minister Lucas Papademos is trying to ensure cash-strapped Greece avoids sinking into a chaotic default when big bond redemptions come due next month.
His finance minister said Athens had only until Sunday night to clinch a second financing package from lenders, after euro zone ministers bluntly told him they were ready to abandon Greece without proof it could push through painful cuts.
"We are on a knife edge," Finance Minister Evangelos Venizelos said on Saturday after what he called a "very difficult" conference call with euro zone counterparts.
http://www.reuters.com/article/2012/02/05/us-greece-idUSTRE8120HI20120205
Most Germans want Greece to quit euro: poll
(Reuters) - The majority of Germans feel the euro currency bloc would be better off if debt-crippled Greece left it, a poll published in mass-selling newspaper Bild am Sonntag showed on Sunday.
The Emnid poll said 53 percent of Germans surveyed thought Greece should return to its former currency, the drachma, while only 34 percent felt it should keep the euro.
http://www.reuters.com/article/2012/02/05/us-eurozone-idUSTRE8130TF20120205
xchrom
(108,903 posts)Alexander
(15,318 posts)Cirque du So-What
(26,038 posts)Published on Wednesday, January 18, 2012 by Common Dreams
Hedge Funds, Goldman Sachs Lurk Beneath Greek Crisis
- Common Dreams staff
<snip>
The Indepenent in London reports this morning:
A group of hedge funds is threatening to block a last-ditch attempt to save Greece from defaulting on its huge debt pile, unless they are guaranteed a significant payout.
There will be a final attempt today when a group representing Greece's private sector bondholders meets senior ministers in Athens to negotiate a writedown of the value of the country's debt ahead of a crucial bond repayment deadline next month.
Sources familiar with the talks, which collapsed at the end of last week, have said that a number of hedge funds are holding up the restructuring deal to ensure that they make a fat profit, after snapping up Greek bonds at distressed prices.
http://www.commondreams.org/headline/2012/01/18-1
For those who haven't read Matt Taibbi's Griftopia, I recommend it highly.
Perhaps the Germans need to direct their ire at a more worthy target - Goldman Sachs.
throneoflunacy
(9 posts)hyenas feasting on a still-moving carcass.
vaberella
(24,634 posts)It will cause massive economic problems worldwide...end of story.
On the Road
(20,783 posts)it can devalue its currency and boost exports and tourism. Huge, huge difference.
Greece does not have the kind of economy that can flourish with a highly-valued currency like the Euro. Droppig the Euro is just about the ONLY avenue for Greece to go forward.