Greece Heads Toward Default

Greek Prime Minister Lucas Papademos told a group of labor-union leaders Wednesday that he expected that a deal on a 50% haircut on Greek government bonds would be sealed within two weeks. A day earlier, a government spokesman had warned that without a deal, Greece would be forced out of the euro and into a hard default. The trouble for Athens is that the prime minister's statement looks increasingly doubtful, and avoiding default may no longer be possible.