Friday, October 14, 2011

EU Said to Consider One-Time 50% Greek Writedown, Bank Backstop

Bloomberg reports:
European officials are considering writedowns of as much as 50 percent on Greek bonds, a backstop for banks and continued central bank bond purchases as key planks in a revamped strategy to combat the debt crisis, people familiar with the discussions said.

The Greek bond losses may be accompanied by a pledge to rule out debt restructurings in other countries that received bailouts, such as Portugal, to persuade investors that Europe has mastered the crisis.
Bottom line: They are going to sink the Greeks and protect everyone else. I have been reporting this in the EPJ Daily Alert for more than a week:
The specifics of the EZ rescue are still in the making, but from what I picked up on the sidelines of the World Ideas Forum (where Geithner spoke), it will probably result in Greece going into a controlled default, while the other PIIGS are protected by a firewall, whereby all the liabilities of other PIIGS banks will be guaranteed by some European entity.
Consider this done.


  1. IOW...The Germans (And Americans) are the primary slaves of the EuroBorg.

  2. There are two classes of banker/political-owned slaves - (1)The productive obedient (2)The parasitic goof-offs. They will both be assimilated in the Borg Collective...Nobody is going to be "sunk".