As the euro keeps plunging and Greek bond yields are soaring, markets are preparing for the worst case: A Greek exit of the euro and a default on $381 billion worth of debt.
The worry: The opposition party Syriza will win the general election at the end of January, make outrageous demands to creditor nations, and move the country out of the euro.
However, Syriza never said it wanted to leave the euro and default. It does, however, want to modify the conditions of the 2012 bailout and debt restructuring: budget cuts, tax hikes, and labor market reform, which stabilized the debt levels but sent GDP crashing.
"We are playing a big game of chicken here."
, Pierpont Securities
