Reality has been suspended.

“There is a little pause in these discussions. But I am confident that they will continue and we will reach an agreement that is mutually acceptable in time,” Papademos said according to a transcript of an interview with CNBC.

via Greek PM confident debt swap to be clinched in time | Reuters.

Private Bond holders i.e. hedge funds are never going to take any haircut on their bonds, the reasons outlined here.

Greek default is now inevitable there is absolutely nothing that can be done except for wasting a monumental amount of tax payers money delaying default for another 6 months, and thus multiplying the pain.

The repeated application of a bad idea, does not ever result in the required outcome.



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