The Greek saga continues, and every day brings new speculations, stories, and calculations. Whether or not to help was the first question, and, since, it is how to.
IMF and ECB and all the politicians are currently hashing it out. The German paper “Frankfurter Rundschau” has a piece on that fight; Harrison has a bit of translation and comment here. Apparently, somebody from the ECB has drafted an angry, angry rebuttal to IMF involvement, mostly because the German fear is that these guys are weak.
How good relations are: “The letters ‘IMF’ should from now on mean ‘Inflation Maximizing Fund’ … “, it says there! In the meantime, the consensus that Greece will have to default appears to strengthen, see, for example, Krugman and Boone and Johnson.
For me as a European, the prospect of a Greek default in the face of stubborn German orthodoxy is truly depressing. Not for the default per se, but for what it means for European unity and solidarity. Who knows where Europe will go from here?!
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