Analysts at Rabobank explained the escalating tensions over a Grexit.
Key Quotes:
"In Europe we have seen further escalation. The Troika have told the Greek government to submit to their demands by 16 February; the Greek PM has decisively rejected those terms and will be asking for WW2 reparations and the repayment of war debts from Germany. Is this defiance ahead of a last-minute compromise?"
"Alan Greenspan has popped up to argue a Grexit is “just a matter of time” (while giving his unequivocal backing to Germany, perhaps to be expected given his total inability to understand debt dynamics while Fed chair). Meanwhile, the Greek Finance Minister has told the Italian press “the Euro will collapse if Greece exits.” For now there is still no sign of the market reacting to that: however, we will need to watch closely to see how solid that ‘solidity’ is."
Key Quotes:
"In Europe we have seen further escalation. The Troika have told the Greek government to submit to their demands by 16 February; the Greek PM has decisively rejected those terms and will be asking for WW2 reparations and the repayment of war debts from Germany. Is this defiance ahead of a last-minute compromise?"
"Alan Greenspan has popped up to argue a Grexit is “just a matter of time” (while giving his unequivocal backing to Germany, perhaps to be expected given his total inability to understand debt dynamics while Fed chair). Meanwhile, the Greek Finance Minister has told the Italian press “the Euro will collapse if Greece exits.” For now there is still no sign of the market reacting to that: however, we will need to watch closely to see how solid that ‘solidity’ is."
