Just a few short hours after Tsipras called Obama, the US president in turn called the German chancellor and told Merkel to get a "durable" deal done asap (or else the stock market "wealth effect" for the 1% may promptly evaporate). More importantly was Obama's insistence to support the IMF sticking point, namely to "achieve debt sustainability", which of course is ludicrous, but it means that both Lagarde and Obama are now pressuring Germany to haircut Greek debt.
From the White House:
Readout of the President's Call with Chancellor Angela Merkel of Germany
The President and German Chancellor Angela Merkel spoke by phone this morning about Greece. The leaders agreed it is in everyone's interest to reach a durable agreement that will allow Greece to resume reforms, return to growth, and achieve debt sustainability within the Eurozone. The leaders noted that their economic teams are monitoring the situation in Greece and remain in close contact.
And moments ago the White House also reported that Obama told Tsipras that a deal is in "everyone's interest" by which he, of course, means everything should be done to avoid a market collapse.
So will Obama save the day? Or, like the case of IMF, will the mere specter of a forced debt haircut spook the Eurogroup (i.e., Merkel) who know that if Greece gets a concession then all the other PIIGS will promptly line up?
Tune in tomorrow to find out if today's session of late day hopium fizzles or actually transforms into an actual deal.
