Last week, the Eurocrats tried to persuade the markets that it has gathered the strength to deal with the DEBT CRISIS IN earnest. But even with three days to analyze and digest the statements it is still not clear as to how the actual bailout will work. The ultimate question: Who will guarantee all the good credit being established that will allow the EFSF to do its job to insure the markets against sovereign default??
Posts Tagged ‘peripherals’
Notes From Underground: BRUSSELS TO WASHINGTON–HOW MANY ROADS CAN A CAN BE KICKED DOWN?
July 24, 2011Notes From Underground: The Europeans delivered on a bailout of the Peripherals (Maybe So, Maybe Not)
July 21, 2011After reading through the vast amount of news on the Brussels “emergency” meeting, I am not sure I truly understand what the final outcome of the European resolutions for financial stability entail. There are bond swaps on Greek debt, which will mean a soft default, and then there is an increase in the size of the EFSF funding and a move to allow the buying of secondary sovereign bonds. Again, it is not so easily to understand at this juncture as so much contradictory information is being provided that the final agreement doesn’t appear at this time.
Notes From Underground: Trichet, Juncker, Papandreou, Sarkozy and Merkel Provide the Dance of the Seven Veils
June 20, 2011Another weekend full of “surprises” as the EU tried to entrance the markets with the slow dance of default/reprofiling/insolvency/bailouts/bail-ins/austerity budgets and of course a voluntary agreement to reschedule the duration of the debt of the PIIGS. No matter if you put a veil on it: a PIG is a PIG. The language of the Eurocrats is so convoluted that every press release creates more confusion rather than offering any type of clarification of how the financial support mechanism is to provide support in real terms. In seems that the Brussels Eurocrats are mainly concerned about the banks and how much exposure they have to a Greek default. A major credit event in Greece will cause the other PERIPHERALS to consider the possibility of a “default” in response to a major solvency action by the Greek authorities.