When the blood hounds just sniff blood….the fox is dead.
http://www.nytimes.com/2010/02/25/business/global/25swaps.html?em
Greece has symptoms.So some buy some bond insurance.So the cost of bonds go up.So it costs more for Greece to sell bonds…..so Greece has more symptoms ..until the bonds fail to sell and the insurance makes money.
Self -fullfilling…or just an accelerator to the inevitable ?
Probably the latter.Greece could’nt balance it books in the good years..it won’t now in the hard years to come. A default is coming….
The Germans will have to lose some fingers before they act….so they will act late in the day and that will cost them.Thats politics…..just not possible for the Germans to act early.
I wonder what the political fallouy cost will be…..German State control over EU finances…a German Chancellor for Europe ?
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