Greek Restructuring Could Hurt Greece, Boost Euro

Plans to restructure Greece's sovereign debt place a significant burden back on the Greek government, according to report by ING. The report suggests Greece will need to shave 30% off its spending and add 5 years to its debt repayment plan, numbers that are unlikely to quietly pass Greek political muster. Greece and Europe are currently engaged in a high stakes game of chicken, with Greece unwilling to agree to a plan that puts the burden on Greece for cuts, and European nations unwilling to finance unsustainable Greek debt loads. In a strange twist of fate, it is Greece that may have the upper hand in the deal. Europe's banks, particularly those in France and Germany, are at risk of failing if Greece does not come to some kind of solution. That could kill the Euro and leave a lot of people on the long side of anything trading with the Euro.