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OPINION/ANALYSIS...Larry Elliott
- "It could have been a disaster. Had Greece's private-sector creditors convincingly rejected the idea of exchanging their old bonds for much lower value new bonds the skies would have fallen in. Financial markets would have crashed, credit lines would have dried up, banks would have gone broke, the world economy would have headed back into recession.
- Some of these things may still occur, but not right yet. Greece has won itself and the rest of the eurozone some breathing space by sweet-talking and strong-arming a majority of banks, pension funds, insurance companies and hedge funds to take big losses on their investments rather than risk losing the lot."
