S&P: Greek Default Imminent.

[Johnny Boy]

S&P senior official Moritz Kraemer has told Bloomberg this afternoon that Greece will default very shortly. Last Friday PSI talks broke down and are set to resume on Wednesday.
The chair of the negogiations Dallera from the IIF had also said last Friday if a deal is not reached this week, Greece will have to default.

Greece has a bond repayment coupon of 14.5 billion euro in the coming weeks and needs a deal done, as it was agreed last October 130 billion euro with private creditors on board.

S&P expects Greece to default soon | Reuters

Today's comments from S&P seem to reaffirm that the mood in the talks is pesamistic. The Economist is reporting that hedge funds are 'stinking' the process and playing hardball.

In the meantime the Greeks have despatched a senior delagation to Washington for talks as fears grow that europe is on the brink of a eurozone country defaulting.

Twitter

S & P? My pet dog could probably make that call just now. Why anyone pays attention to this shower, I have no idea. They failed to spot the trainwreck of the Irish banking system until the train had fallen off the bridge. They are as useful as a recording of last week's weather forecast.

[Neutron]

I wonder how far the Greek people will be pushed?

It seems a long time ago when these people were out on the streets with riots. It almost seems the EU want to see how far you can push a society before they crack. Perhaps its all an excuse to send in the EU army to keep "Peace".

[drummed]

Another post? I thought we'd had another tweet from someone we've never heard of relating to something they know nothing about.
Sigh.........disappointed.

[Impartial_Eclipse]

Still no deal!

Greek Meeting Ends Without Conclusion: LAOS Head Refuses To Sign Deal | ZeroHedge

[Danny10]

Greece bailout: Coalition fails to agree cuts

Yes, looks like all bets are off

[sport02]

Greece Headed For A Default Say Central Bank Sources

German newspaper handelsblatt reports this morning.

Some central bankers expect that Greece will fail to enlist enough private investors in a voluntary debt restructuring to avoid a technical default, a German newspaper reported Tuesday.

Greece is likely to make its case for a voluntary debt swap after a meeting of euro group finance ministers Wednesday, the Handelsblatt newspaper says. The Greek government is seeking to lower its burden by EUR100 billion.

Handelsblatt cites unnamed central bank sources as saying the country will fail to achieve that goal, leaving the government little choice but to make the write-down mandatory for investors holding out.

Requiring investors to take a loss would prompt credit rating agencies to declare a debt default for Greece, an event with unforeseeable consequences for financial markets.

The report doesn't specify whether its sources are with the European Central Bank or with the German Bundesbank. Neither bank would comment early Tuesday.

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Greece Headed For A Default Say Central Bank Sources - www.capital.gr

German FinMin
http://twitter.com/#!/zerohedge/stat...92148746215424

[catlaw5819]

The general consenus seems to be that the Germans and EU want Greece out of the Euro. It makes a lot of sense, they have had enough time to prepare for some sort of a default.

[Edo]

The general consenus seems to be that the Germans and EU want Greece out of the Euro. It makes a lot of sense, they have had enough time to prepare for some sort of a default.

absolutely - been thinking it myself since christmas - I see McWilliams is saying the same - first time David and I have been on the same page in quite a while!

nobody expects them to deliver - they havent a hope of raising taxes and revenue - nobody is even vaguely interested in the "assets" they have put up for sale, their export industry has been passed out by all of Europe, All of Asia and good portion of Africa at this stage - they are so fcked they dont even realise it yet.

the Rest of the EU and Eurozone are ready for the Greek default - have probably been ready since last summer - the shenagians of the last 6 months have just been a charade - to outwardly, for good manners and diplomatic niceties give the Greeks one last last chance to give some semblance of getting their house in order - but everybody knows its not going to happen - and that the cash will not be forthcoming and even if the bailout money is released - it will go directly to the creditors - not in a million miles of Athens which is going to have to live on its own earnings.

the objective since october has been to drive the Greeks out of the Eurozone - because there is no mechanism to eject them - so they have to be forced out...that is the process that has been in gear all along ticking away -

The reason Merkel and Sarkosy told Papandreou to quit all talk of a referendum was that there was a danger that the Greeks would vote yes to stay in the eurozone and that would pose a serious problem of democratic legitimacy for the Eurozone club - as in all the rest want to get shot of the greeks as soon as possible - a yes vote would have thrown a major spanner in the works there - they'd be stuck with the Greeks and their promises and non-delivery.

All the rest of the EU are ready for a Greek default and eurozone exit - they have their plans to cover their banking systems and financial systems and to quarantine the reprecussions to as small an area as possible.

Why do you think the Yanks have been so quiet about the whole issue recently ?- if the Yanks were anyway exposed here (ie thru CDS and their vast interests in the European financial system) - they'd be hopping up and down like mad and urging the Europeans to get their act together - they know they are covered and are keeping a low profile.

the fact of the matter here is that Greece's only card for the last year has been threatening the doomsday option- which is why it has done f.all in reforming its economy except hit on the poorest people thru the only means it has of getting revenue - ie gov spending and direct taxes on neccessities - it has done absolutely nothing about tax evasion, breaking up cartels and clamping down on the billions of euros leaving the country for Switzerland,Cyprus and other destinations - done nothing or is totally incapable of doing anything - your choice.

Its been going around for last while stirring up xenophobia ( the Greeks are world experts - they invented the word for chrissakes - its always somebody elses fault - im surprised that they havent declared war on the turks yet - the usual default option for Greek governments under the financial pressure) and threatening the rest of Europe "I've got a gun to my head and I'll pull the trigger" - well the fact of the matter is that the rest of Europe have taken most of the ammo out of the financial revolver and the only bullet left in it has Greeces name on it - this party game is coming to an end now - the rest of the EU couldn't care less as long as it results in 2 options - A) Greece stays in the Eurozone in a specially designed secure padded room in the mental facility wing and cant fart without the say-so of the rest of the EU - or B) the preferred option - Greece and politicans call it quits - leave the Euro - convert back to the drachma and default in whatever manner and the whole sordid business is concluded as quickly as possible.

the future plan is that Greece pulls out, back to the new drachma and defaults -

for the rest of the EU

European states, the ECB and banks take a hit - but they have been deleveraging for quite some time anyway and while it will be a painful kick in the balls and may result in some banks being nationalised or part-nationalised and a bit of recapitalization will be required -the private investors will get screwed royally - but berlin or Paris wont be remotely worried about that - the overall effect will be minimal enough -Greece is not that big - this is the real reason for the ECB pouring liquidity into the European banking system late last year to prepare for this eventuality -the Eurozone will weather the amputation of this gangrenous limb - and it mightn't be the last - all depends if the Germans decide that if its worth the candle to preserve the Eurozone or go back to the deutchmark - or some kind of hardcore DM zone area.........but it will happen on a more leisurely timetable -I expect Portugal and possibly Ireland to depart in the mid-term future - maybe others - but the rest are all far more in tune and in sync with the German economy than ourselves and the portugese - but it will be in our hands to decide - the Greeks havent a hope - the Eurozone will be far more credible with the Greeks gone. Also it will be far cheaper to fund the recovery of Greece when it is outside the eurozone - the euro ,sterling, krown and dollar will go miles farther in drachma land than currently - which means the rest of the EU will be able to fund its obligations to Greece much more easily.

for Greece

Well it will mean in the short term - a degree of chaos - the drachma will float and sink quite rapidly in value - defaulting will mean the imposition of capital controls , the collapse of the domestic banking system and the confiscation of all deposits in the Greek banks by the Greek state. Given that this will be the 6th formal default on debt by the Greek state since independence - it will be shunned by normal international finance - with their history, and overview of their economy and its prospects - you'd want to be clinically insane to invest there - with so much choice elsewhere. Also the price of imports will go thru the roof which see them fall and more self-sufficency take route - but that will also end any chance of a modern economy -On the plus side - Greece will eventually be able to stablilise at a level that suits it - that of a second/third world economy that earns its living from the low cost production of agricultural commodities and cheap and cheerful tourism - Greece will become what it always has been - a larger version of Andorra with beaches - and its people will be able to go back to their normal sense of goverence - elect populists who will cave in to street violence and give them tax-holidays and large pay rises every second year - but at least it will be Greeces gig - not everybody elses.

Tell if Im wrong - but thats the way im reading it - Athenians love a good pyrotechnic show - have been doing this type of thing for years - they needn't bother really -they're about to be cut loose either now or in April after the elections - they are going to get their freedom soon enough and after that they'll have nobody to blame but themselves - they are screwed either way - the medicine is going to go down regardless

[Ulster-Lad]

As a reminder, a critical part of the Greek debt deal is the private sector's agreement to roll over existing holdings into new bonds, which as we learned may now see the 15 cent per bond sweetener into new EFSF debt reduced. According to the Handelsblatt, that is now off the table. Dow Jones summarizes: "Some central bankers expect that Greece will fail to enlist enough private investors in a voluntary debt restructuring to avoid a technical default, a German newspaper reported Tuesday. Greece is likely to make its case for a voluntary debt swap after a meeting of euro group finance ministers Wednesday, the Handelsblatt newspaper says. The Greek government is seeking to lower its burden by EUR100 billion. Handelsblatt cites unnamed central bank sources as saying the country will fail to achieve that goal, leaving the government little choice but to make the write-down mandatory for investors holding out.

Handelsblatt Warns Insufficient PSI Participation Will Lead To Greek Default | ZeroHedge

We will know tomorrow it seems.

[rebellin]

Revolt in Greece's Parties, Early Elections Called

Revolt in Greece’s Parties, Early Elections Called | LaRouche Irish Brigade