German-IMF Rift Stalls Greece Deal !

• The PSI (private sector investors) debt negotiations for Greek debt will certainly not go well. If PSI accepts a 70% haircut voluntary debt restructuring, the ISDA (International Swaps and Derivatives Assoc.) will declare that Greece has not defaulted. Thus, all the 5 major banks which sold the CDS (insurance against default) need not pay out any insurance claims. These are the banks which essentially own/control the ISDA. So why would any PSI agree to such a deal? They stand to lose enormously.
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• The sane/sound strategy is to reject any compromise, haircut …. and force a hard default by Greece. Then, the ISDA will have no choice but to accept a default credit event has occurred and the banksters will have to pay out on all the CDS claims! Thus, the PSI will be made whole on their debts and more! Why would any PSI accept losses when the ECB and IMF are exempt from it? Do not buy into all the MSM talk that a deal is imminent. I don’t think so!
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  German-IMF Rift Stalls Greece Deal ! 
  By STEPHEN FIDLER, http://online.wsj.com/
  BRUSSELS—A long-awaited agreement to restructure more than €200 billion ($262 billion) of Greek government bonds in private hands is being held up in large part by big differences between two of Greece’s official creditors: the International Monetary Fund and Germany.
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  Several people close to the negotiations say a deal between Greece and private bondholders could be concluded in hours, as only small differences remain between the two sides. But the rift between the IMF and Germany—on top of a desire among all official creditors to secure a solid commitment from Greek politicians across the political spectrum to big changes in the economy’s structure—has delayed final completion of the accord.
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  The gap between Germany and the IMF, central players in the decision on a new bailout for Greece, reveals a fundamental divergence in their approach to reducing Greece’s huge debt burden.
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  The IMF has argued, increasingly vociferously, that cutting the face value of the €200 billion of Greece’s debt in private hands won’t be enough to reduce the government’s debt to the official target of 120% of gross domestic product by 2020—a goal many analysts consider not ambitious enough.
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  … for more click here!

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