Clock Ticks To Deadline for Greece, Europe

The crisis negotiations between Greece and the “troika” drag on through the weekend with no resolution in sight.

With both sides digging in to hardened positions, the clock clicks towards a deadline for agreement on terms of the 130 billion Euro rescue plan to avoid a disorderly default for Greece that will likely occur if the deal isn't reached and the country can't roll over its debt due on March 20th.

Finance Minister Evangelos Venizelos says a deal has to be reached this weekend and that things aren't going well because neither side is willing to yield on its positions.

The “troika,” made up of the European Union, European Central Bank and International Monetary Fund, isn't convinced that Greece can make the cuts it demands and that even if it does, they might not be enough to put the country on sound footing.

The Greeks have been unwilling to yield to additional demands for more government pay cuts and austerity measures and so the talks are now scheduled to drag into Sunday.  Another sticking point are estimates that the 130 billion Euro rescue package might not be enough and that as much as 15 billion Euro dollars might be required to save the country from default.

ETFs that could be significantly impacted by the outcome of the talks include iShares Germany ETF EWG Vanguard European ETF VGK and CurrencyShares Eurodollar FXE

Problems not only exist in disagreements between Greece and the “troika” but among the political parties within Greece and the populace which continues demonstrating its displeasure in the streets of Athens as recession and austerity generate more pain.

Bottom line: The Greek crisis has been simmering for two years and now appears to be reaching the boiling point.  An uncontrolled default could have major negative repercussions for Europe, the Euro and global financial markets, including the United States.  While we're enjoying the Super Bowl, the weekend in Europe will be pivotal.

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