The endgame between the private sector bankers, hedge funds and investors combine and the beleaguered debt ridden European states is just about to begin. Greece has been unfortunate to be the first pawn in the line, as it is is easy prey and extremely lucrative with its asset rich, heritage rich low population nation. That it has been unable to negotiate a better bail out option is because of the fear of alienating other EU nations, mainly Germany whose Banks will take the biggest hit in case of a default or a debt rollover one of the two principal options for Greece today.
The protracted negotiations with ECB and the IMF has not helped. Solutions have been temporary but damage has been permanent. It has raised the overall repayment due by kicking the can down the road, squeezed out the liquidity from the Greek economy that was needed for its revival and attracted increased bear pressure on the debt markets that could now embroil the whole of Europe . Greece today is in a worse position than what it was last year when the crisis began with more debt to pay up and lesser means to do so. That too after a year of unprecedented belt tightening to cut down flab that accumulated over the past decade.
A year ago Bankers owing Greece money should have been told to reschedule debt repayment and Greece should have been encouraged to float 10 year long term bonds to repay it short term commitments. That would be the right option out of the mess caused by irresponsible monetary policies of the previous Greek Governments and greedy bankers who sold them duds. Instead the option to float long term bonds just vanished under bear pressure and the quick and high decibel downgrading of Greece in the debt market.
As a result of this mishandling by the key stakeholders , Greece is today on the verge of default. Now the crafty bankers are pushing Greece for privatization of its lucrative natural and historical assets which has long been eyed by the rich investors of the world. Also the fact that Greek is structurally the weakest link in fortress Europe makes it easy pickings. Pushing Greece back to the wall and forcing it to sell its assets at default prices would enable the first private control over a high value elected European sovereign state by private investors.
However the real target may be the bigger Economies like Spain and Italy and possibly even France and the UK unless they wake up to the endgame collectively and decide to tame the Shylocks on the loose.
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