Friday, May 6, 2011

An official familiar with the situation said…

Euro Tumbles Most in a Year After Report Greece May Drop Common Currency

"European finance officials are gathering in Luxembourg today for an unscheduled meeting that may discuss proposals for restructuring Greek debt, said two European officials familiar with the situation. A German official said the discussions would include a German paper on options for confronting Greece’s growing debt load, which has spurred speculation by investors that a restructuring was a likely outcome".

Posted by alan @ 10:38 PM (1463 views)
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5 thoughts on “An official familiar with the situation said…

  • The BBC website says,” Yields on Greek government 10-year bonds have leapt to over 15%, a sign that investors are becoming increasingly sceptical that they will be repaid”.

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  • “Yields on Greek government 10-year bonds have leapt to over 15%”

    15% p.a. for ten years implies either the expectation of a massive haircut, or, dare it be mentioned, that the Greeks might elect to forcibly convert their sovereign debt into an undated security with a miserable interest rate – rather like what the UK did in 1931 with our debts from WW1, which is still on the books today as the 3.5% War loan.

    (Officially, the British stock conversion was voluntary, and not forced, so we did not technically default; but the banks only agreed when they knew the UK would default if they didn’t..)

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  • general congreve says:

    DO IT!!! 🙂

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