A Greek default on the cards but the banks aren

12th October 2011

A Greek default due

Markets are pricing in a 93% probability Greece will default, with the country missing its deficit reduction targets, contracting greater than anticipated (-5.5% vs. -3.8%) and unable to meet salary and pension obligations within the next couple of weeks. However, there is still much uncertainty on what the next steps will be. Politicians are still clinging to the hope further bailouts will help and hinting they will demand private investors to bear a bigger part of the pain ("technical revisions" to allow greater haircut) but Finland is demanding collateral and time is running out.

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More from Mindful Money:

The logistics of Greece leaving the Euro

Economic crisis: What is the end game?

Capitulation: Are we there yet?

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