by Michael Vail
Source: ZeroHedge
Wonder why the Greek 2 Year bond just plunged, sending its yield to a laughable all time high 39.09% (a 312 bps move today alone)? Wonder no more.
According to the ECB’s Ewald Novotny the central bank has folded to German demands, and will now allow a “temporary” Greek default. Of course, what happens next will be a complete freeze in capital markets (see the chart below which shows borrowings on the ECB’s Main Refinancing Operation while itis still available) but who cares: the central planners think they have it all under control.
From Bloomberg:
European Central Bank council member Ewald Nowotny suggested the bank may compromise and allow a temporary Greek default as officials scramble to fix a sovereign debt crisis that’s spreading to Italy and Spain before a leaders’ summit in two days.
According to the ECB’s Ewald Novotny the central bank has folded to German demands, and will now allow a “temporary” Greek default. Of course, what happens next will be a complete freeze in capital markets (see the chart below which shows borrowings on the ECB’s Main Refinancing Operation while itis still available) but who cares: the central planners think they have it all under control.
From Bloomberg:
European Central Bank council member Ewald Nowotny suggested the bank may compromise and allow a temporary Greek default as officials scramble to fix a sovereign debt crisis that’s spreading to Italy and Spain before a leaders’ summit in two days.
Europe now, the US soon ;)
ReplyDelete....when Americans lose everything and they have nothing left to lose...
ReplyDeleteTHEY'LL LOSE IT.....
Uh oh....
ReplyDeleteBest blog ever seen
ReplyDeleteHolly shit, 39% interest! That is as much as some loan shark credit card rate. Who is still borrowing at this kind of rate? Greek might try using Master or Visa card. It is cheaper and you also get millage point.
ReplyDelete