The Stalemate In Greece Cannot Last

  • Because of the wide differences of positions between Greece and its creditors, positions are hardened by the respective electorates, which provide little room for maneuvre.
  • Therefore, any outcome of the negotiations will likely be a fudge that allows both parties to save face and face less wrath of their electorates.
  • However, a fudge is dangerous in itself to improve the Greek economy; clarity is needed to take away the uncertainty.
  • The room for a fudge seems fairly small, and there are plenty of banana peels on the way that could derail the whole process into an accidental Grexit.
  • A Grexit itself is likely to be a catastrophe, and isn’t priced in at all.
 The Stalemate In Greece Cannot Last | Seeking Alpha