, Columnist
Nemesis Calling Greek Bonds
Investors look hopeful of help from the ECB. That's unlikely
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Greek bonds have rallied in recent days on reports the International Monetary Fund may agree to participate in the next stage of the country's third bailout.
The government has little option to agree to the IMF’s austerity demands. But it would be no more than marriage of convenience for all involved. The consequences for the economy, and Greece's ability to ever service its debt, are likely to be calamitous: GDP shrank 1.2 percent in the last quarter of 2016.