I'm beginning to wonder what is default and what is not default. I believe they are asking the private bond holders of Greek debt to take a 50% hair cut and to then accept and interest rate of in the upper 3% or at 4%, and that will avoid a Greek default. Well if your getting a 50% hair cut would that not qualify as a default. and have to accept an interest rate lower than what may be appropriate for the amount of risk on top of it.
I belive it was about two weeks ago that the German 6 month bonds actually sold with a negative interest rate of -.01. Now people are actually paying Germany to hold their money over in Europe albeit a very small negative interest rate.