It is good to have cleared the Greek Damocles sword for a few months,” said Raphael Gallardo, the head of economic research at Axa Investment Managers in Paris, which oversees about 515 billion euros ($680 billion). “The euro area governments and European Central Bank have won some time, two months at least. It is positive for risk assets in the short run.
In other words: "we have kicked the can down the road yet again". What appears to this observer to have been ignored is the Greek elections due in April. The Greeks, now in the 5th year of a serious economic contraction are unhappy to the extent of manning the barricades. The bond holders are expected to suffer a 53%+ haircut and thus unlikely to favor a rollover of Greek debt.
The main players on the political left hoping to form a government after the April elections are already proposing a distribution of the bailout
Syriza and the DemLeft's proposal is for Greece to declare a selective moratorium on debt repayments and use the euro bailout money for a programme of social reform.In other words: "we will stiff the bondholders and use the bailout cash to prop up our allies in this failed socialist society". This is the usual leftist theft as utilized by the Obama administration
We are in for interesting times.