Sorry for giving away the ending to anyone who has not yet seen Star Wars but more and more I can’t help but see Papademos playing that same role. The Greeks need someone who is truly representing them. Who is turning over every stone to figure out an alternative. He has debt on one side that needs to be reduced as much as possible. Not touching troika debt in any of the myriad of forms and only getting debt forgiveness of 53.5% doesn’t get them on a sustainable path. The debt reduction has to be much deeper. Yes they will need money for a post default Greece. Is there really nowhere to get it? Would they really have to leave the euro. Would the ECB truly abandon their banks. Would the IMF not fulfill their responsibility? Stop flying to Brussels and get on the plane to other places that could help. Maybe this really is best solution available to Greece, but how can the Greeks know until someone has tried to come up with an alternative. At the very least the threat of a bid away might be enough to get a better deal from the troika – I find it hard to believe that anyone on this distribution list hasn’t used a bid away or hint of a bid away to get a better bonus at least once!
Where is the “Greek bailout” money going? How much is going to Greece, especially now with escrow accounts, and something close to a primary surplus. ZeroHedge takes a cut at it. The details of the bailout remain fuzzy, but if you check out where the money is flowing, how much really makes it to the people of Greece versus right back to foreigners?
Since I’m sick of Animal Farm references, maybe it’s time to turn to Animal House. In the legendary words of Bluto “Was it over when the Germans bombed Pearl Harbor?” The Greeks shouldn’t accept their fate and it is time for the leaders to lead and explore every option to get the best deal for the Greek people.