The incompetency of Greece is that they assumed that Germany was negotiating in good faith so they didn't strengthen their
BATNA. Strengthening their BATNA by preparing for a Grexit would have been wasteful if an agreement happened. Greece knew that an compromise was best for all sides so assumed they shouldn't waste by preparing their BATNA. But German voters are spoiled children who want all the benefits of the Euro and throw a childish temper tantrum if they have to pay back a fraction of those benefits. So Mommy Merkel once again robbed Germany of it's future growth to bribe it's citizens today.
I have no clue why Greece would think for two seconds that Germany was negotiating in good faith after Germany has lied about Greece every step of the way. It is clear that German taxpayers believe fantasies about Greece that have no bearing in reality.
Today Germany "won" the victory of kicking the can. Their idiotic selfishness means that instead of either correcting course now or cutting their losses they will instead correct course or cut their losses again in three years when the cost will be greater. And I have no doubt that they will spend the next three years lying to themselves about what they are doing.
The offer that Greece has accepted is worse then what Greece would have had if five months ago they had just given up on any offer at all and prepared to go it alone. Greece had an idealistic hope that Germany actually wanted to correct the situation because THATS BEST FOR GERMANY. But Germany would rather piss money away to prove a point. And meanwhile the Euro still has corrected none of the imbalances which is bad for everybody but that's okay because it's least bad for Germany. And that's what important, right? It's not about taking care of your people, it's about making sure you "win" in comparison to those chumps across the border who dont know it's a race.
Deal in a nutshell:
They just agreed to spend the next two years making those red numbers higher and the green number lower.
mainiac, what Iceland did is much more suspect than simple bankrupcy. In effect it manage to weasel out of its requirement to have deposit insurance for its banks.
International "investors" collected arbitrage for years by using this arrangement. They profited from it knowing damn well that they were operating without a safety net. If you profit from a risk premium, you own the risk and they profited handsomely.
The essence of capitalism is risk. If investors profit from risk but are protected from the consequences of that risk, they are not investors but are in fact beneficiaries of transfers. The risks of investing in Iceland were very clear and weighed towards white elephant scenarios.