Bleak outlook for Greek debt deal just got bleaker

We are glimpsing what will likely become a familiar scenario. There is no more can kicking for Greece. It is facing a March 20 interest payment on its debt of nearly $20 billion. Without the infusion of cash from the EU, Greece will default and probably tip the whole thing over. But the EU won't give Greece the $130 billion - or more - in bailout money unless Athens' creditors agree to a steep cut in the value of the bonds they hold. The plan calls for a swap of the old bonds for new ones with a sizable reduction in their overall value - up to 70%. Then there are the austerity measures that Greece must take that would be extraordinarily painful for most citizens. The government of Prime Minister Papademos is having hard time getting the other parties on board to share the blame for the pain. Bloomberg: With the country's stability at stake, the government is racing to clinch agreement on a plan that's been in the works since July, with talks between international monitors and Greek...(Read Full Post)