Default and Exit Seem Inevitable
Unfortunately, it looks like we are heading towards default and exit. The Syriza government is seeking a political solution. Yet, given that the IMF and the ECB are involved, I do not think there can be a political solution. What is particularly troubling is that in order to avoid crossing “red lines” Greece will end up crossing a lot more serious red lines after default and exit… Fighting against austerity is a noble cause, but you need to know when to call it quits. This is not a game of chicken.