Europe Is Preparing For The Worse When It Comes To Greece

Facing A Teetering Greece, Europe Plans For The Worst -- New York Times

FRANKFURT — To listen to European leaders lately, the debate about Greece’s exit from the euro zone is increasingly moving from “if” to “how.”

Policy makers and many economists continue to regard Greece’s departure as a doomsday situation that must be avoided at all costs, and there is clearly an element of brinkmanship in talk of a “Grexit.” But it has become clear in recent days that secret contingency planning has begun in case events spin out of control.

The German Bundesbank all but admitted as much on Wednesday when it said in a report that Greece’s exit would be difficult, but possible “with careful crisis management.” The cautious, data-driven economists at Germany’s central bank would not have made that statement without studying the issue thoroughly.

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Update: Greek Euro Exit By Numbers: What Economists Expect -- Wall Street Journal

My Comment: The Greeks are still in denial of their situation. But the best line belongs to IMF managing director Christine Lagarde who says .... she has more sympathy for children deprived of decent schooling in sub-Saharan Africa than for many of those facing poverty in Athens.

Hmmmm .... I think Greece's good will is now at an end in many of Europe's capitals.