Sunday, June 28, 2015

Greece is it too late?

First, its never too late to walk back from the precipice!  Granted time is now really short, and no one seems to be really interested in solving the problem.  Those like DSK (ex-head of IMF) are able to say the truth, reschedule all Greeks sovereign loans by extending the maturity (to 25 years) reduce the total amount of debt by "forgiving" some of the money.  

Of course this also means that Greece can not borrow a penny without ECB approval -- that maximum debt/GDP is set out in a new Greek constitution... oh look, a "squadron of flying pigs", that's never going to happen.  The Greeks, if Europe forgives the debt will be looking to borrow the next morning, and GS or MS will be more than happy to camouflage these loans into something else.

The true disaster is that Europe's leader seem to believe that contagion will not happen!  These are the same guys who seem to have never noticed that Greece was getting in trouble.

Fundamentally, we are seeing a tragedy enfold in Greece today.  Banks are closed, so if you have no cash, you resort to barter...Of course the world will not see the Greek desintegration, because you can bet you ass that reporters are about to go on strike.

Sad to say, Virginie you are about to loose your bet!


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