There is “no plan B” for Greece to avoid default, European Union Economic and Monetary Commissioner Olli Rehn said.
“This week Greece faces a critical juncture,” Rehn said in a statement issued today in Brussels. “Both the future of the country and financial stability in Europe are at stake. I fully respect the prerogatives and the sovereignty of the Greek Parliament in the ongoing debate. And I trust that the Greek political leaders are fully aware of the responsibility that lies on their shoulders to avoid default.”
The person who lends money to an organization that has no prayer in hell of paying and is well-aware of this fact, should they open their eyes, before they make the loan, has no right to complain when the inevitable default occurs.
It’s always amusing to watch people whine, bitch and moan when the inevitable result of foolishness manifests, but self-inflicted pain is worthy of bemusement much as it is when someone hits their hand with a hammer. Sure, you feel their pain, but there’s a snicker in there too – even if you’re decent enough not to express it.
Greece should not “endorse” any “revised” program. The fact of the matter is that the debt has been trading on an “as-defaulted” basis for months now, and the banks have attempted to take advantage of this by buying up this crap and now intend to try to convert it at “par”, pocketing an immediate and unearned capital gain exactly as banks here did when they gamed PPIP.
The Greek government should tell them to go pound sand; certainly the people are telling them that this is exactly what they expect parliament to do.
We’ll see if they listen, and if not, if the people enforce their will.