Greek Coalition Talks Collapse, Elections Seen Likely, Euro Officials Begin to Weigh Greek Exit

Greece Appears Headed To New Elections As Talks Stall -- Washington Post

BERLIN – Greece appears headed to new parliamentary elections next month, further delaying its efforts to meet international demands to overhaul its economy, after leaders of the country’s major political parties declared little hope Sunday for a last-ditch effort to form a coalition government.

The failure of the leaders to pull together a coalition brings Greece one step closer to leaving the 17-country bloc that uses the euro currency, although much will depend on the new elections. Voters last week overwhelmingly chose parties that are against the painful austerity measures that are a condition of the bailout keeping Greece from bankruptcy. Opinion polls since the election show those anti-austerity politicians gaining even more support.

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Update: Euro Officials Begin to Weigh Greek Exit -- Bloomberg

My Comment: The Euro is unraveling before our eyes. With billions owing .... and the Greek government (and people) having lost the stomach to pay it .... the Greeks are now positioning themselves to default on their obligations and to eventually leave the Euro. This will be a disaster for Greece, and a major hit for the rest of Europe and the international banking system.