Europe Fears Greece Is Heading Inexorably Toward Default -- L.A. Times
European politicians are beginning to acknowledge the possibility that bankruptcy is an option for Greece, which is caught in a dispute with the EU and IMF over the pace of its spending cuts.
Reporting from London—
The dreaded D-word for those struggling with Europe's economic crisis is no longer just "debt."
Try "default."
European politicians, who denied for months that bankruptcy was an option as Greece struggled to bring down an enormous budget deficit, are now beginning to acknowledge the possibility.
Nervous investors appear to increasingly believe default is just around the corner. They have withdrawn billions of dollars from Europe's stock markets over the last few weeks. Beyond cold-shouldering Greece, investors are punishing European banks that hold huge piles of government debt and pulling back on lending money to traditionally safe countries such as Italy.
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My Comment: There is no political or public will in Greece to do what is necessary to resolve their debt crisis .... and other European officials are now openly acknowledging that a Greek default is just around the corner. Even the New York Times Paul Krugman is accepting the inevitable.
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