Greek Haircut and the Eurozone Crisis

Guardian Live - Euro: Reports in its 5.01pm post that the Credit Agency S&P has stated that the Greek haircut of 70% is “ ..not sustainable unless the ECB also takes a hit ”. In other words if the European Central Bank does not write off the debts of Greece all the pain that Greece has gone through over the past few years wont matter, the debt will still suffocate Greece. This news will be read with interest in Greece, what is the point of agreeing to a deal if the ECB wont take hit, the reason that ECB wont take a hit is the fact that the Germans wants to protect the stability and credit worthiness of the ECB, thus Berlin has refused to grant Euro bonds and will be wary about allowing ECB to write off its Greek bond debts. One gets the feeling that the leaders meeting in Athens will take some time folks.