One wonders why all those public employees were rioting in Greece over the past year. According to a review of Greek accounts following the first bailout, their budget deficit actually got bigger. In other words, they missed the targets set for them by the IMF and EU. This probably means no more cash for the debt-trapped nation. This is why an IMF economist believes the default of Greece will be messy - and could very well kick off an unprecedented series of bank failures. The Greek government says any more steps will only deepen the recession and make things even worse. The debt trap is quite clear at this stage. These complications triggered not only the aforementioned expectations for a hard default, according to WSJ: "I expect a hard default definitely before March, maybe this year, and it could come with this program review," said a senior IMF economist who is keeping close tabs on the situation. "The chances for a second program are slim." A hard default means a messy one....(Read Full Post)