Risk of default is rising as Greece talks yield little result so far

[yellowpage09]

Euro-area data should continue to show signs of improvement but the focus will stay on the ongoing negotiations between Greece and the 'institutions' - the European Commission, IMF and European Central Bank.

Recent comments from government officials suggest that a reform package is unlikely to be agreed by 24 April, when an informal Eurogroup meeting has been scheduled in Riga; the next official Eurogroup meeting takes place on 11 May.

The release of EUR 7.23bn in delayed bailout payments looks increasingly unlikely this month, and there is now a serious risk of default in May.

So far there have been no signs of contagion to the rest of the euro area as bond yields of other periphery countries remain close to historic lows and stock markets are performing well. But fears of another eruption of the simmering euro-area crisis remain at the forefront.


(Source: http://fxwire.pro/Risk-of-default-is-rising-as-Greece-talks-yield-little-result-so-far-26298)

[Bit_Happy]

It's shocking the stock markets in nearby countries are performing so well (when a meltdown is clearly possible soon), but I suppose all the excess fiat money needs to be "invested" somewhere.

[H.W.Z]

I don't think the the 'institutions' will easily let Greece default otherwise the creditors will lose a lot of money and the Euro will be crashed in a minute. All of them wouldn't expect such worst scenario. 

[Q7]

I have reasons to believe this is far from over. What we see right now is just on the surface level that all we can see is everything being fine and moving well. Everybody knows the underlying core issue surrounding the crisis. Default will not mean much since eurozone economy is still big enough to sustain it but more towards the chain of events coming from exit of a nation leading to another. Nobody is happy to bail out your neighbor and how long can you continue to do that.

[bryant.coleman]

I don't think the the 'institutions' will easily let Greece default otherwise the creditors will lose a lot of money and the Euro will be crashed in a minute. All of them wouldn't expect such worst scenario. 

The Euro has already lost some 30% of its value against the USD in a time period of 12 months. A possible default by Greece will make matters much worse for the currency.

[ashour]

EU should let Greece just default, there is no point in keeping them not defaulting. Greece will never pay their debts, they just keep borrowing and borrowing until when ?

[Tugbit]

A newspaper article today says the whole Balkan region is preparing for default

http://www.hln.be/hln/nl/960/Buitenland/article/detail/2290212/2015/04/17/Grieken-halen-steeds-meer-geld-af-bij-de-banken-Balkan-bereidt-zich-voor-op-failliet.dhtml

Edit to add : Greeks are withdrawing their money fast, banks are "bleeding dead" Looks like a bank run

[yayayo]

Greece is in default since years, because there already was a "debt-restructuring". Of course this simple fact will never be admitted officially. It's braindead to send even more money to Greece when they are nowhere near to any improvement over the previous situation. But the EU fears it could be perceived as a precendent and lead to the collapse of all the other severely indebted countries.

I'm not sure what will happen. But there is no easy way out in any case. People will have a really hard time.

Sooner or later the worldwide debt orgy will have to come to an end. When this happens, the living standard of the majority will decrease significantly, because it is fueled by excessive borrowing. In today's world buying something on credit is the regular case, which is absolutely sick and unsustainable.

ya.ya.yo!

[Miracal]

A newspaper article today says the whole Balkan region is preparing for default

http://www.hln.be/hln/nl/960/Buitenland/article/detail/2290212/2015/04/17/Grieken-halen-steeds-meer-geld-af-bij-de-banken-Balkan-bereidt-zich-voor-op-failliet.dhtml

Edit to add : Greeks are withdrawing their money fast, banks are "bleeding dead" Looks like a bank run

But the politicians wouldn't  admit this fact and still try to do everything to avoid default. Default means failure to make debt payment, no one wants to see that results! Let's see how long they can sustain!

[johnyj]

The scheme is to create money out of thin air and lend it to Greece, then they will go bankrupt, then sell their assets, so banks acquire Greek island with the flip of a pen

http://www.marketwatch.com/story/schaeuble-varoufakis-see-little-common-ground-on-greek-aid-2015-04-16?dist=lcountdown

"a Ponzi scheme of borrowing has led to a Ponzi scheme of austerity"
.
.
.

"He picked apart various aspects of the existing austerity package, saying he was against privatizations that were fire sales. “I don’t think even [former British Prime Minister Margaret] Thatcher would do privatizations the way the previous government did,” he said."