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February 11, 2015


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I am watching and learning.

Maybe it is to discourage other euro-peripheral countries from asking in the way that the Greeks have now been asking and from asking too loudly? Maybe the Germans and others who wish to continue to push for austerity reforms would rather not have the Spaniards, Portuguese, Irish and Italians thinking "well look at how Greece managed to get the terms changed...hmmm..maybe we should try that!"

Couple that with the fact that the ECB could put Greece in a kind of "penalty box" as Dan Davies puts it in your previous blog post on Greece without really risking a Grexit and all the trouble and pain that would entail..and this could be why we are in full fire drill mode. It could even be that Merkel wouldn't mind if Greece ended up in "the penalty box" since that would really drive home the point to other peripheral countries that pushing back in the way Greece has WILL have consequences and not the doomsday consequences everyone in the media prattles on about but some serious consequences for the peripheral countries without the massive pain for the core countries that a euro breakup would entail...

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