The squeals of indignation as the politicians meet reality.
Compounding the trauma, Christine Lagarde, the French finance minister turned IMF chief – and one of the few key players who appeared to be enjoying herself in her new headmistress-like role – issued a grim warning to her former European peers.
The IMF would no longer be willing to pick up a third of the total bill for rescuing Greece, a contribution worth €73 billion, unless European banks were prepared to write off 50 per cent of Greek debt.
\”It was grim. The worst mood I have ever seen, a complete mess,\” said one eurozone finance minister.
There just isn\’t any way out of a Greek default and yes that does mean that banks who hold Greek paper are going to have to take a loss.
And one of the reasons this is all getting so dangerous is that it\’s taken the politicians 18 months to recognise this reality.