It Looks Like Everyone's Giving Up On Greece

Photo: AP

Greece isn’t ripping the cord this weekend, but it probably doesn’t matter.Everyone’s throwing in the towel.

Headlines about Germany bracing for a Greek default are pretty telling.

Says Bloomberg: “Germany May be Ready to Surrender in the Fight to Save Greece.”

The gist: After two years of step after step to prevent a default, all the smoke signals from Berlin indicate that the fight is over, and that Greece is probably going to default.

Of course, the market has known this was probably the outcome all summer, with short-term yields hitting cartoonishly high levels.

The question is: Can banks avoid an immediate hit, and will a Greek default cause a crisis of confidence in Italy, Spain, and elsewhere?

If there is a ray of optimism, it’s that Greek PM Papandreou certainly didn’t sound like he was throwing in the towel at his speech yesterday.

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