The Fate of Greece: To Default or not to Default

    That is the question and in my last few posts I have tried to look at it with its larger implications for Europe and for the world-ie, us. What is interesting though is that in my last two posts that looked at this I cited some with financial knowledge who gave diametrically opposed views. A CNBC headline warns that a Greek default may mean US recession but Nouriel Roubini-aka Dr. Doom-says that a Greek default at this point it the best outcome both for Greece and Europe.

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    It is not clear that the terms the EU is offering are any better today. Today Greece's Finance Minister Evangelos Venizelos had a two hour conference call with "officials from the European Commission, International Monetary Fund and European Central Bank—collectively known as the troika."

    http://www.cnbc.com/id/44599219

 

Greece denied reports that it was considering calling for a referendum over its eurozone membership

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    "The statement came at the end of a two-hour teleconference between Greece's Finance Minister Evangelos Venizelos and officials from the European Commission, International Monetary Fund and European Central Bank—collectively known as the troika.

"Good progress was made, and technical discussions will continue in Athens over the coming days," the EC statement said. "The full mission is now expected to come back to Athens early next week to resume the review, including policy discussions."

Global markets had been anxiously awaiting the results of the conference call for some signs of progress.

Venizelos, who held a first call with the troika officials Monday, had to convince them that Greece's delayed reform and cutback program is viable. If so, the country will receive the next euro8 billion ($11 billion) installment of the bailout that has been keeping it solvent since May 2010. "

    Venizelos went about convincing the troika by declaring that, "Our primary target is to shrink the state," deputy government spokesman Angelos Tolkas said on NET radio. "The Greek state budget has stopped paying the wages of some 200,000 civil servants in the last two years. And we are continuing."

     "Stopped paying the wages of" 200,000 over 2 years?! Wonder why there are riots.