Its unclear how much hair is actually left in Greece, but its debt has gone from "Haircut" (here and here) to firesale. The first haircut was 50% in October 2011, but by early 2012 more haircuts were on the docket. This is not all that surprising since few economists thought a credible plan for Greek debt management has been presented. So the term "haircut" is actually quite fitting in the context, since regular trips to the barber are the status quo (unless you are bald).

Back to the news, today Greece managed a more permanent solution to its debt troubles: it bought back its own debt (for pennies on the dollar, or better $0.32 – $0,40 cents per dollar of debt) using other peoples' money (the European Financial Stability Facility (EFSF)). Interesting transactions: Europeans paying Greece to buy back Greek debt that is (mostly) held by Europeans. Why?

Haircut or firesale, Greek debt is still forecast rise to a whopping 188% of Greek GDP. Definitely default range.