Mish – Greek Bond Talks Edge Toward 68% Haircut Deal; Will the Deal Be Accepted?
Former ECB president Jean Claude Trichet said there would be no haircuts. There were. The first Greek haircut was 21% and it was insufficient. The second Greek haircut deal was 50% and that too was insufficient. On each failed attempt, the ECB and EMU poured more money into Greece.
There is now about €200bn of Greek debt held by banks, hedge funds and other investors up from about €50bn a couple years ago.
A third renegotiation is now underway, rumored to be a 68% haircut. Clearly there would have been far fewer ramification on banks if Greece would have defaulted long ago.
RSS Posts Feed
