More on the Greece Drama

Greece has learned very well to play an nice game of brinkmanship with the European Union.  They promise that they will reform and then always manage to avoid doing it.  The EU huffs and puffs but always in the end they give in.  I think that as much as Greece annoys countries like Germany, the thought of Greece failing and having to leave the Euro, is more than they can stand.  The mentality of “no defeat for the Euro” is so ingrained in the political mind that having to face failure with Greece is, for the moment, more than they can stand.  Better to keep giving money to Greece and pretending that things will improve than have to face a messy reality.

An example of this is the “strict deadline” of now for Greece to reach an agreement with its creditors or face default.  That “strict deadline” has now been extended to Monday…and who knows how much longer after that.  The Greeks have learned that they can play this game, and so far it was worked.  Eventually the patience of Germany may run out…but not yet.

I got this from Mish Shedlock

Postponed Till “Tomorrow”; Juncker Issues ultimatum “Comply or Default”

It’s Groundhog Day once again as Greek crisis talks for debt deal pushed to Monday

Coalition backers held a five-hour meeting late Sunday with Prime Minister Lucas Papademos to hammer out a deal with debt inspectors representing eurozone countries and the International Monetary Fund — but again failed to reach an agreement.

Leaders of parties supporting the Greece’s coalition government say crisis talks for massive new debt deals will continue Monday.

Juncker Issues ultimatum “Comply or Default”

The theater of the absurd continues for yet another day with Juncker’s ultimatum: Comply or default

Jean-Claude Juncker, the head of the Eurogroup, warned Greece through an interview to a German magazine that it will either comply with its creditors’ requirements or default, as it should not expect any additional support from its peers.

Earlier, the head of the ruling coalition’s third partner, Giorgos Karatzaferis, stated in Thessaloniki that he would not tolerate any ultimatums.

“We need to examine whether the creditors’ demands are in favor of growth for the sake of the Greek people, otherwise we will not get the support package. I am not going to sign up to that,» said the leader of Popular Orthodox Rally (LAOS).

This is beyond ridiculous. The EU and IMF Need to Stand Up and Announce “Too Late” Deal is OFF, then work with Greece to plan a return to the Drachma.

Mike “Mish” Shedlock
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