For the love of all things financial LET GREECE DEFAULT. Please! It's insignificant; a speed-bump, if you like. Bailing Greece once more defers the risk of contagion and fosters more uncertainty. I submit that this is a political impasse rather than a financial issue and Merkel and puppy-dog Sarkozy are at the forefront of the facade. This politically contrived European 'banking crisis' provides ideal fodder for the current 'leadership' to ride to the market's rescue, elevate their individual status in the eyes of the pathetically grateful duly wrenched from the jaws of deprivation and in so doing, save-the-day! In the interim adequately capitalised, credible institutions like Socgen and BNP pay the piper... You only have to listen to honest line-by-line commentary from the CEO of Socgen to find the truth.
By the way, if the uncertainty persists, one or all of DB, Socgen or BNP will end up wearing the donkey's tail on assigned (contrived) counterparty-risk and get shut out of the funding markets facilitating another Bear Sterns-like collapse, the consequences of which are well-documented from the last financial crisis.
The markets WANT Greece to default. That will confirm and clarify the logic behind the common union and the enforcement of the regulations that govern it. It solidifies the eurozone as a functional economic region and lends credibility to the euro which diminishes in stature each and every day. At the same time it will also send a CLEAR message to the other PIGS to get their house in order, quickly. One more thing, if countries want to leave the EU to enjoy the benefits of a weaker currency let them do so, voluntarily. It will cost too much to do so anyway..
An orderly default? What a crock of the purest political pap imaginable..
By the way, if the uncertainty persists, one or all of DB, Socgen or BNP will end up wearing the donkey's tail on assigned (contrived) counterparty-risk and get shut out of the funding markets facilitating another Bear Sterns-like collapse, the consequences of which are well-documented from the last financial crisis.
The markets WANT Greece to default. That will confirm and clarify the logic behind the common union and the enforcement of the regulations that govern it. It solidifies the eurozone as a functional economic region and lends credibility to the euro which diminishes in stature each and every day. At the same time it will also send a CLEAR message to the other PIGS to get their house in order, quickly. One more thing, if countries want to leave the EU to enjoy the benefits of a weaker currency let them do so, voluntarily. It will cost too much to do so anyway..
An orderly default? What a crock of the purest political pap imaginable..
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