En lugar de convertirse en una nueva fuente de fondos para hacer frente a la deuda italiana (la visión más optimista de las LTRO), ¡han creado más deuda!
In the end, this won’t do much for the sovereign debt market, but will shine a spotlight on which banks should be shorted and will possibly expedite their default.
As the ECB prints and the Euro declines and inflation rises, then what?
19 céntimos de cada euro del rescate consigue llegar al presupuesto griego. El resto se devuelve a la UE.
The EFSF reminds me of the tooth fairy – there are those who believe because they are told it will work, and those who try to figure out how it will work, and come out on the non-believer side.
¿Y todavía nos preguntamos por qué la gente odia tanto a Wall Street?
I would be very careful buying Italian CDS as they could redenominate their bonds in LIRE and it wouldn’t be a Credit Event.
El problema de la zona euro es simplemente de un orden de magnitudes demasiado grande como para proporcionar una ayuda real.
Here is the text of the Draft Terms and Conditions prepared by European Union officials on the current status of the euro region’s bailout fund according to a Bloomberg article. After an initial read we have included our thoughts in bold into the document.
Nos podría venir bien otro Lehman antes de que sea demasiado tarde…
A real default is the only good and fair way to ensure the write-downs occur and the system can move beyond Greece.
The battle is forming up along the lines of those who are trying to show some restraint and prudence and are willing to deal with the consequences of that decision against those who want to do everything possible, giving the highest chance of “success” with absolutely no downside protection.