Wednesday, May 18, 2011

If at first you don't succeed....

bail, bail again!

Looks like some "soft" haircuts will be included in "Grease II", the amazingly cheesy codename for the second round of EU bailouts for Greece.

They won't call it a default, and they'll probably try to make sure that whatever happens doesn't trigger default events in outstanding CDS contracts, but (a) it's a default, and (b) it won't be enough this time either.

I don't understand why the PIG countries just don't flat out default and be done with it. They are destroying their economies for the sake of German and French bankers.

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