Leaked Troika Document Uncovers Greek debt-deal Charade

Eurozone finance ministers reached an agreement for a 130 billion euro bailout of the Greek government. Private holders will take deeper losses than they accepted last month. It's billed as a deal, but is it? The real news, in our view, is that this is still all hocus pocus. Peter Spiegel at the Financial Times obtained a confidential 10-page memo distributed to senior officials in Europe over the last week. It's a "debt sustainability" report prepared by analysts in the troika, essentially showing the baseline assumptions used to negotiate this deal look really rosy. They have Greece's economy, which has been contracting for five years, flat-lining next year and growing again in 2014 after the country has passed the toughest austerity measures seen in memory. They don't even get Greece to the 120% debt-to-GDP in 2020 as European leaders want
and deemed sustainable previously. And more pessimistic and seemingly more likely scenarios have the debt-to-gdp ratio reaching 160% in 2020. Nevermind the language in the leaked document that when decoded basically seems to mean Greece may need another bailout and this whole plan might fall apart under the staggering toll of austerity and rising debt. We dissect the fine print with Capital Account producer Demetri Kofinas. Source