There may be “Lehman-like” consequences if the Greek Parliament fails to pass a vote of confidence that may come as early as Sunday, says Zerohedge, citing a report by SocGen. With two further defections in the majority PASOK party on Thursday, the vote may come down to one or two votes.
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A successful outcome would throw the ball back into the EU’s court, and allow the EU/IMF policymakers to proceed with devising a medium-term funding solution for Greece, which includes a new 5-year campaign of tax rises, spending cuts, and sell-offs of state property to continue receiving aid from the European Union and International Monetary Fund and avoid default. But a failure
will have significant effect on global markets, the Euro, and credit ratings of anyone holding significant amounts of Greek debt.