EUR

My understanding is that a departure from the union would follow a bailout so that bond holders would not be harmed. The departure itself would be necessary post-bailout in order for Greece to right its fiscal situation presumably via a return to the drachma and subsequent devaluation. The departure wouldn't be married to the notion of a default and the reason for all this hysteria rather than just defaulting is to find a solution that will prevent contagion.

It was clear and obvious between the lines German govt wants Greece to leave Euro. But they cannot.
Greece could indeed then start the printing press and monetize itself out of default but the difference
between ECB fund rate and a possible Greek Drachma rate (0) is already too small. So European
Eurozone banks would be sitting on EUR 178 billion of worthless Greece debts.
The only way of solving the crisis is to outsource labor to Greece Portugal at first in order to raise the GDP and make debt payoff feasible. But they cannot because of political targets.
So the EU got trapped in their own trap and that is STUPIDITY and INCOMPETENCE.
One frequently cited example is Portugal's attempt to set up a LNG spot market for Europe. A good idea
Portugal would import LNG set up a spot market like Henry Hub and sell natural gas to all of western
Europe. Guess who turned that down? Germany. What happened? german chancellor turned up in Paris
in the company of Putin and his best mates, some Oligarchs, and Medvedev, then CEO of Gazprom.
And wow France said sorry Portugal France doesn't want a gas pipeline from Portugal/Spain to the north. End of story. Hitler went east with war tanks and his successors also complete idiots go east with what they think is politics and clever diplomacy.

catnip,

yes what u said is true but the 1 question i do wish to ask.....

If Greece is to default euro will crash but again if Greece were to ask to leave the euro zone...What will happen???

As the news in Germany a grp of people going to stop the EU from dispersing the aids and if they able to which means IMF will be the only sole group to provides the aids....

BLS attributing jobless claims # to administrative issues, market focusing more on Empire State # which came out hot but the glaring observation is the increase in prices paid and the decrease in prices received, implying pressure on profit margins going forward.

Tons of data coming out today mixed in with Fed speak.