Posts Tagged ‘reprofiling’

Notes From Underground: Trichet, Juncker, Papandreou, Sarkozy and Merkel Provide the Dance of the Seven Veils

June 20, 2011

Another 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.

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