Despite the rather excitable headlines, some variant of a can-kicking exercise for Greece still seems like a plausible outcome. The reality is that there is no mechanism to stop Greece from using the euro (but see comment below), and the EU has limited ability to effect a regime change in Greece after the referendum victory. The only plausible durable solution is for Greece to exit, but the Greeks broadly wish to avoid that outcome. The situation will slowly simmer, at least until there is a broader downturn elsewhere. A Chinese stock market crash could be a trigger, but it would need to be validated with effects in the real economy....Bond Economics
Whither Greece?
Brian Romanchuk
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