07-03-2015, 02:50 AM
This is precisely what Goldman's Franceso Garzarelli, co-head of macro and markets research, admitted earlier today in an interview on Bloomberg TV, when he said that the ECB "will have to go big" if the situation in Greece worsens and leads to wider peripheral bond yield spreads. He added that a close call or "no" vote at referendum will cause spread widening which as a result of the complete lack of bond liquidity borne out of the ECB's intervention and soaking up of government bond collateral, "the market is not deep enough to accommodate a rotation in risk at this point in time."
Goldman: "ECB Will Have To Go Big" | Zero Hedge
Alas, all these growth assumptions for 2015 now look sadly obviated by events. Because tourism is suddenly collapsing after the government’s decision to hold a referendum, shut banks, and default on its payment to the IMF, the Ekathimerini reported
Greece’s Largest Industry Suddenly Takes a Terrible Hit | Wolf Street
Sir, Memory. No memory of life before the financial crisis; politics has dominated it ever since. But now I can hardly remember life before Friday night. Fear. I am terrified of tomorrow, all I now see is black. Uncertainty, leading us through our days, every remainder of hope for a brighter future being destroyed by the minute. I look at my three-year-old niece, I envy her ignorance, I envy her age. I am 21 years old and the past few days I feel tired by life. A referendum that supposedly gives me the right to define my future, seems to have taken it away.
The past five days have been worse than all that has gone before - FT.com
As the Greek crisis evolves, it is important to understand that a successful structural adjustment programme requires strong country ownership. Even if negotiators overcome the most recent sticking points, it will be difficult to trust in their implementation if the Greek people remain unconvinced. That has certainly been the experience so far.
Lessons from Greece and other unsuccessful bailouts | Business | The Guardian
The International Monetary Fund has electrified the referendum debate in Greece after it conceded that the crisis-ridden country needs €50bn (£35bn or $55bn) of extra funds over the next three years and large-scale debt relief to create “a breathing space” and stabilise the economy. With three days to go before a knife-edge referendum, the IMF revealed a deep split with Europe as it warned that Greece’s debts were “unsustainable”.
IMF says Greece needs extra €50bn in funds and debt relief | Business | The Guardian
The Fund has traditionally viewed debt relief as an integral part of any package to improve the economic prospects of a country seeking help, but it has met resistance from European governments fearful that the cost would have to be met by their own taxpayers.
IMF says Greece needs extra €50bn in funds and debt relief | Business | The Guardian