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European leaders are scrambling to save Greece from a debt default that could cause global economic turmoil, but the Greeks themselves seem in denial.
In a reaction that is causing frustration and anger abroad, the Greeks seem more inclined to blame others for their troubles than accepting that something is deeply wrong with their country and painful medicine is urgent.
"The ordinary people don't understand the seriousness of the situation...not only for Greece, but for the whole world economy," said Jan Randolph, director of Sovereign Risk Analysis at IHS Global Insight.
The head of the Commonwealth Bank has warned the deepening debt crisis in Europe has the potential to plunge financial markets into turmoil and create a new credit crunch...
"Greece and the problems generally in Europe are cause for concern.
Certainly I think the Greek situation has to be sorted, and in the end I don't think the outcome is going to be palatable for banks or the Greeks," Mr Norris told The World Today...
"What always happens in these sorts of situations is that the cost of credit goes up.
We've already seen over the last few weeks that rates start to increase again internationally.
It does have the potential to cause significant dislocation in the European markets," he said.
"Unfortunately while we are to a large degree disconnected to what goes on in Greece, the fact of the matter is that markets now are globally interconnected so what happens in one market tends to have an impact on other markets."Economists are comparing the Greek crisis to the last credit crunch which led to the disastrous collapse of Lehman Brothers in September 2008.
Meanwhile, the former chairman of the US Federal Reserve, Alan Greenspan, says a Greek default is "close to certain".
"The protests are not going to go away and the Greeks can't deliver ...it looks like you're seeing growing divisions between the IMF, EU and ECB," said David Lea, western Europe analyst at Control Risks.
"I think we're moving inexorably to default."
Greek bail-out timeline
* May 2010: EU and IMF agree bail-out package to prevent Greece defaulting on its debts; in return, Greece agrees to make 30bn euros of budget cuts over the next three years
* February 2011: EU and IMF experts tell Greece it must make further cuts to keep its recovery on track
* April 2011: EU figures reveal Greek deficit revised up to 10.5%, worse than previously thought
* May 2011: Greece begins privatisation programme but is warned the IMF may not release more funds because Athens cannot guarantee it will remain solvent for the next 12 months
* 29 June 2011: Deadline for Greece to agree new austerity package
Meanwhile, eurozone finance ministers have failed to agree on how to make private creditors contribute to a possible second Greek bail-out.
Ministers meeting in Brussels continued their discussions late into the night on Tuesday on ways of making private bondholders share the cost of a second rescue package without throwing financial markets into turmoil.
As a result of their failure to reach a deal, the cost of insuring Greek debt against default shot to an all-time high.
In a sign of possible contagion from the Greek crisis, credit rating agency Moody's said it might downgrade the three largest banks in France because of their exposure to Greek debt.
Share prices for BNP Paribas, Credit Agricole and Societe Generale all fell as a result.
France appealed for calm, saying it opposed a Greek restructuring which could entail write-offs for private banks.
"The French position is voluntary - no restructuring, no credit event and in line with the ECB," government spokesman Francois Baroin told reporters in Paris.
The EU and IMF are demanding the measures in return for the release of another 12bn euros in aid next month which Athens needs to pay off maturing debt.