european debt crisis

[skydog]

Germany is now reporting that Greece wants to back out of the agreement! I ain't sayin' nuttin'!

[msr13]

Yeah, this could lead to some very scary situations. US markets got clobbered on the news. But, the Greek leader will put the deal up as a referendum for the public to vote. Although extremely risky-- if the vote goes negative, the deal is dead and Greece will default on 100%. If the vote is a yay, then the accountability for the tough austerity measures the plan requires will move from Greek leadership to the people, providing political cover and not require as readily special elections. It really comes down to how Greek leadership frames the referendum question. If they frame it as a question of sticking in the EU, the vote will most likely be supportive, if they frame it around have to adhere to tough, unpopular austerity measures, it could crash the plan altogether. The next couple of weeks will be volatile. I may have gotten some of the facts off, so please correct me if I did-- just read the article last night.

[sws1]

My guess is that it's a political move, as well as one to put pressure on the banks to write off more of the debt. Negotiating tactic.