A rosy-fingered dawn is still far off for Greece, argues Mohamed El-Erian in BusinessInsider. The Pimco CEO writes in an op-ed today that last week's restructuring is almost certain to be "found wanting" and that a second round will be needed.
"Were it to be fully implemented – highly unlikely – the result would still be an unsustainable debt stock of 120 per cent of gross domestic product in 2020. With such a prospect, new private capital will not engage in Greece, robbing the country of the oxygen needed for investment, growth, competitiveness and jobs."
When the second restructuring — El-Erian calls it "PSI (Public Sector Involvement) 2" — comes, Greece will be in an even worse position than it was Friday, since most haircut recipients were private….
http://www.businessinsider.com/el-erian-get-ready-for-greek-restructuring-part-beta-2012-3
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