D^2 on Greece

D-Squared expects Syriza to play chicken with the ECB — “present them with a fait accompli on the debt default, and gamble that they will not have the nerve to take measures which might have the effect of forcing Greece out of the Euro“. But Europe has had several years to get used to the threat of a Greek default, so will be able to contain it relatively easily. So Syriza either wins concessions or gets booted out of the Euro, but neither approach hurts the rest of Europe that deeply.

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