Can you imagine the carnage…

…to the euro if the Eurogroup comes to the brink of rescuing Greece and then balks?

It would confirm every stereotype about Europe being incapable of action.

I would expect a far greater crisis as confidence is lost in the EU as an institution than if the notion of a package had never been raised.

It is for this reason that I think there is a 90% chance of a debt guarantee for Greece, at a minimum. The costs of doing nothing at this point would be catastrophic. A fully fleshed out deal may be days away, but there will be a deal nonetheless.

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