Even though global financial markets showed some resilience this week, the tone remains cautious as the underlying problems haven't changed.

" There is no way to avoid pain for Greece," said Holger Schmieding, chief economist at Berenberg Bank. " The austerity is painful. Further painful structural reforms are on their way."

There'r essentially two options: To continue to cut spending and raise taxes in a painful attempt to convince creditors that it can change its ways. Or,  Greece can admit defeat, default on its debts, and hope for the best.

Euro  zone leaders have said repeatedly that a default is off the table, arguing that such an outcome would have severe and unknowable consequences for the euro currency and the global financial system.

Euro crisis: 5 things you need to know

Growing recognition on concern  that the status quo is not working past 15 mths, Greek  govt has cut wages for civil servants, raised taxes, reduced pension payments and furloughed thousands of workers.

In exchange, Greece received billions of euros in emergency funding from the IMF and other countries in the euro currency zone.

While bailout money has kept a default at bay, many economists say, requisite austerity has pushed the economy deeper into recession. That's a problem because Greece will not be able to pay off its debts organically until its economy starts to grow again, something economists don't expect to happen for some time.

teeth53 thot: This coming week trading on such story - Very bad news...Ya. It's Germany on d driver seat now  (smart driver). Something economists love to do is paint optimistic pic and now economists love to paint a even more pessimistic pic. Does it help? (No). Simply  this is market driven, got to respect d market forces.