Today the can-kickers took it to another level, kicking the can with the can in it further down the road, via a de facto delay to the EU summit and the decision everyone kind of hopes it will come up with.
Meanwhile, MoneyGame published what it describes as the 'new scariest chart in Europe' (above), with the following commentary:
Greece, in a way, seems like a lost cause. Everyone knows it will default in some way or another. But while Greece might theoretically be ring-fencable, nobody thinks Italy is...
2 comments:
When you look at what many Latin American countries pay on their bonds, it looks like Italy is still getting a good price on its debt. The risk is still underpriced on the Italian debt, that is a positive function of its being part of the Euro zone. The Greeks are going to default, sooner is better than later for all concerned.
Just like last time there will be loads of hedge fungus with massive leveraged bets in place against the most likely falterers.
And few of these interested parties really want the realisation of just how bad things are to get out before the dominos start falling.
In this context perhaps viz Moody's retention of an AAA rating for France.
Post a Comment