Last rites for Grecian euro?
24/07/2012 § Leave a comment
An observation striking in its simplicity is this: something that cannot continue indefinitely, won’t.
This has been my frame of reference for Greece’s troubles. The size of the debt is unsustainable; payments on the debt cannot continue to be made. Something has to give.
All the activity of the last months (years?) hasn’t affected the underlying conditions or the key ratios. As Bloomberg reports:
“Nothing is really fixed in Europe,” John Manley, chief equity strategist for Wells Fargo Advantage Funds in New York, said in a telephone interview.
Now, we have reports that the IMF is washing its hands of Greece:
In an article published on its website, Spiegel cites unnamed senior European Union sources in Brussels who told the news magazine that the International Monetary Fund (IMF) had signaled it would not contribute to any further aid for Greece.
Months ago, when it looked like Greece might fall over and leave the euro, the problem was that no plans for exit were in place. The experts said it would take months to organise. Well, we’ve had months, now. We also have plans.
Who decides when to pull the plug?