There's a great article over at the Locale today.
Basically...this Greek-German debt problem is about to go into fourth gear. I suspect by this weekend...over three quarters of the German public will be against any loan, of any type.
The article centered around an opinion of Hans-Werner Sinn of the Ifo Economics Institute.
In a radio interview....he came out very direct....zero chance that Greece can ever pay back the loan. Then, like a cherry on a ice cream sundee....he added that Greeks would eventually ask Germany to waive the debt.
Basically...it's a giveaway deal....and people are beginning to wake up.
What happens here if the public starts to get upset by this weekend and stall this out?
This entire mess in turbo right now. The Greeks need the money within a matter of a couple of weeks. I doubt that they can wait more than 1 month max. If Germany stalls out and says no....the entire EU deal falls apart and the IMF deal is the only one on the table. IMF never waives debt and always demands a massive change in policy. It'd destroy the current Greek government if this occurs.
So as this week unfolds in Germany....watch for regular people on the street to discuss this and by Sunday night...with the chit-chat shows in full swing....it'll be the decision point. I'm betting they say 'no'. And then on Monday....a wide swing on the Euro rate and some Greeks pulling their money out of Greece to hide in the attic.
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