Still optimistic of a deal for Greece.
However, I don't see a down side for either party and markets know the score. If they don't they'll soon enough see it.
Somebody said there are no poor people in Greece, just Government that's broke. I think this statement belittles much suffering by those on the lower steps of life's ladder but it never the less tells story that there is much wealth and prosperous businesses in Greece.
Moreover, Greeks are much better able to live off the land than Europeans who live in concrete jungles. Coupled with their merchant fleet, tourism and agricultural produce, switching to the Drachma or finding their way out of this mess is not likely to be as much pain as what's been inflicted upon it by the austerity strict Germans.
If one trips and falls it doesn't hurt half as much if someone else trips one up. Pull one self up, dust off the dirt and off one goes.
Similarly, the EU should be able to accommodate Greece's departure with an open door for their return when situ turns sweet again. Greece is approx 2% of EU economy apparently. Not sure if this is accurate but what I heard someone say. 2-3% is about the same impact on the US economy from EU shenanigans.
As mentioned before, mess that will ensue from all this - will be on the US v Russians relations as they battle with each other and I fear Greece will become another proxy country to fight over. This will not bode well for US or the EU.
What is one persons loss is another's gain. EU and US will lose. Greece and Russia will gain.
There lies the negotiations. The Greeks know they are in a stronger position than the rest.
So what's on the table, go on be a devil and tempt me to stay. Show me how much you love me...
Forgot to add; Merkel is in a bit of a pickle according to some analysts. 4th elections coming up for her and she is losing votes. German's don't want to show they care. So over to France to help out with negotiations, but who are also broke and there are other hungry mouths looking for handouts... Pickle indeed.
Guessing one possible solution may come from US prodding IMF to do something... :idea: