Consequences of Debt Restructuring. What Would a Greek Haircut Mean for Germany? -- Sven Böll, Spiegel Online It's the worst-case scenario: Greece no longer able to get loans, with creditors having to wave goodbye to a chunk of their money. But what would it mean for Germany? Would the state have to bail out the banks again, and would private investors also suffer badly? SPIEGEL ONLINE takes a look at the likely consequences.
It may only be a small passage in the statutes of the International Monetary Fund (IMF), but it is the bottom line: An organization can lend money to a country only if it is certain the state will remain solvent for at least one year. Washington experts are increasingly doubtful that this minimum requirement can be guaranteed in the case of Greece.
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Update: Spiegel Greek Hit Piece #2: Bailout Troika Finds "Greece Missed All Fiscal Targets" - Next Steps: Game Over? -- Zerohedge
My Comment: The fact that all of this information is being leaked "eagerly" to the media tells me that there are storm clouds ahead. This may be a very rough week for Europe and the world's financial markets.
Update: IMF says reports on Greece missing fiscal targets untrue -- Yahoo News/AFP
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