For those who have been following the Greek crisis, they know that March 8 is the deadline for the bond swap that is essential in ensuring an orderly default of Greek bonds. Just 12 days later, Greece is due for repayment that without any haircut to its bondholders, there would be a chaotic default. The […]

I am in the opinion that the expected sovereign debt and banking crises in Europe have been postponed to the end of 2012 or early 2013. There are two reasons why I think so. The crisis in Europe is essentially two-fold. One is due to government debts. Two is the risk of default by European […]

If I were a European taxpayer seeing my money being used to bailout a near-bankrupt socialist government due to outrageous spending while I live responsibly, I would be angry. Why should I be the guarantor of a profligate? But if I wanted the Eurozone to stay intact, I would bite the bullet and angrily pay […]

The holders of $22 billion in Italian CDS may be growing anxious after receiving news that a 50 percent haircut on Greek debt will fail to trigger a credit event that would force sellers of the swaps to pay out. […] If this failed to trigger a CDS event, many investors may find themselves without […]

[2443] Guess who?

Nope ladies and gentlemen. It is not Germany. Despite voter backlash and political discontent, Germany went ahead. What is EUR211 billion among friends? Nay. It is not the Netherlands. The Dutch were vocal but voted for it anyway. What is another EUR44 billion? No, it is not Finland. For all the demand for collateral, Finnish […]