Greece blinked

Reuters:

Prime Minister Alexis Tsipras has told international creditors Athens could accept their bailout offer if some conditions were changed, but Germany said it could not negotiate while Greece was headed for a referendum on the aid-for-reforms deal.

In exchange for the conditional acceptance, the leftist leader, who has so far urged Greeks to reject the bailout terms in a referendum planned for Sunday, asked for a 29 billion euro loan to cover all its debt service payments due in the next two years.

With queues forming at many cash machines a day after Greece became the first advanced economy to default on the IMF, and signs that supplies of bank notes were running low, Tsipras has been under growing political pressure to reach a deal.

Global financial markets reacted remarkably calmly to the widely anticipated Greek default, strengthening the hand of hardline euro zone partners who say Athens cannot use the threat of contagion to weaker European sovereigns as a bargaining chip.

Tsipras asked in a letter to creditors seen by Reuters to keep a discount on value added tax for Greek islands, stretch out defense spending cuts and delay the phasing out of an income supplement to poorer pensioners.

[...]

Tsipras is saying "sure we can have a deal if you just change these few little things, and give us a new deal so that we can get through the next few months of payments" (after all, the June 30 payment was tiny compared to what's due in the next few months). He's been saying we can do a lot, but there are some red lines I can't cross (like more pension cuts), for months. The Troika is saying, as always, "do what we say or no deal".

At least that's the way I read it.

We'll see what happens.

Cheers,
Scott.

Post #403,158 by crazy 7/1/15 9:48:40 AM Reply	Greece blinked But it may be too late. http://money.cnn.com/2015/07/01/news/economy/greece-bailout-concessions/index.html
Post #403,159 by Another Scott 7/1/15 11:09:18 AM Reply	It's really hard to know who's giving the straight story on this stuff. Reuters: Prime Minister Alexis Tsipras has told international creditors Athens could accept their bailout offer if some conditions were changed, but Germany said it could not negotiate while Greece was headed for a referendum on the aid-for-reforms deal. In exchange for the conditional acceptance, the leftist leader, who has so far urged Greeks to reject the bailout terms in a referendum planned for Sunday, asked for a 29 billion euro loan to cover all its debt service payments due in the next two years. With queues forming at many cash machines a day after Greece became the first advanced economy to default on the IMF, and signs that supplies of bank notes were running low, Tsipras has been under growing political pressure to reach a deal. Global financial markets reacted remarkably calmly to the widely anticipated Greek default, strengthening the hand of hardline euro zone partners who say Athens cannot use the threat of contagion to weaker European sovereigns as a bargaining chip. Tsipras asked in a letter to creditors seen by Reuters to keep a discount on value added tax for Greek islands, stretch out defense spending cuts and delay the phasing out of an income supplement to poorer pensioners. [...] Tsipras is saying "sure we can have a deal if you just change these few little things, and give us a new deal so that we can get through the next few months of payments" (after all, the June 30 payment was tiny compared to what's due in the next few months). He's been saying we can do a lot, but there are some red lines I can't cross (like more pension cuts), for months. The Troika is saying, as always, "do what we say or no deal". At least that's the way I read it. We'll see what happens. Cheers, Scott.
Post #403,181 by a6l6e6x 7/1/15 6:09:08 PM Reply	They are literally playing games. BBC: Can game theory explain the Greek debt crisis?. The Greek finance minister is an expert in game theory. Could this help predict how the Eurozone negotiations will turn out, asks Marcus Miller, professor of economics at the University of Warwick. Game theory is what its name implies. It's the use of games to study behaviour and decision-making. Well, you can improve your odds, but you can still lose! Alex "There is a cult of ignorance in the United States, and there has always been. The strain of anti-intellectualism has been a constant thread winding its way through our political and cultural life, nurtured by the false notion that democracy means that "my ignorance is just as good as your knowledge." -- Isaac Asimov

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