Greece not 'out of woods' yet says top EU official

A Greek default appears likely soon as Greece Dispatches Officials to US Over Default Fears. Greece sent senior officials to Washington on Monday for meetings with the International Monetary Fund as it raced against the clock to break a deadlock in debt swap talks that has raised fears of an unruly default.

Go to 1:45 in this video and listen carefully for at least 5 minutes (you'd probably want to watch more if you have an interest in truth in reporting, competent analysis, or simply the truth). Keep in mind that this interview was done in February, no crystal balls, just spreadsheets and common sense. Independent news has truly come into its own.

A small dose of reality has set in for a group of European central bankers: Euro Officials Begin to Weigh Greek Exit as Euro Weakens. Greece’s possible exit from the euro moved to the center of Europe’s financial-crisis debate, rattling markets as authorities in Athens struggled to form a government.

ATHENS (Reuters) - Greece's international lenders have questioned some of the measures included in a near 12 billion-euro ($15 billion) austerity package prepared by the government and have demanded more details before signing off on the plan, a senior Greek official said on Sunday. The so-called "troika" of inspectors from the European Commission, the European Central Bank and the International Monetary Fund returned to Athens on Friday to conclude a report on Greece's progress in meeting the terms of its latest bailout, which will determine whether it gets further aid. ...

EU and IMF rescue auditors launched a new probe in Greece on Tuesday amid a rising eurozone crisis over talk of debt restructuring and a second bailout.Experts from the European Union and International Monetary Fund will decide if Greece merits a critical new slice of rescue funding, just as a top official at the European Central Bank (ECB) warned that debt default or restructuring would hit the entire eurozone.A restructuring of debt would put Greece's banking system "on its knees", the head of the Italian central bank Lorenzo Bini Smaghi told Italian daily La Stampa.

Major debt restructuring for both Cyprus and Greece will probably force the struggling euro zone countries to leave the single currency, according to Citigroup's latest economic outlook, which warned markets could again be hit by escalating fears.