• Private investors, banks and the private sector have to participate in a substantual way to ensure Greek debt becomes bearable in the long term.
• Participation however, should be voluntary, as “if we impose it , there would be what is called a credit event and then everything falls apart”. If banks don’t respond ” we may have to move towards a compulsory solution”
• This could have very serious consequences, not only for Greece, which would be bankrupt, but have serious knock on effects for rest of the Eurozone
• Banks can lead us by the nose..