On one hand I hope that the haircut is not a credit event, but if a 50% haircut does not trigger the CDS, I am wondering why would anyone buy heavily into the debt of any country facing a non-negligible probability of default.
Unless ECB pumps liquidity into the system on a grand scale, in the trillions, Roubini’s predictions may turn out to be only a prelude to the real thing. My two cents.
Papadimos’ conditions are reasonable. He is willing to run a coalition government; he is not willing to become a puppet…
Read this article in the New York Times: The Denials That Trapped Greece.
Let’s get this straight: Greece’s European partners should not hold the Greek nation responsible for the PM’s miscalculated or ill-advised political maneuver. The misstep can be handled internally. Let’s stop overreacting and humiliating an entire nation. History taught us that this never led anywhere. The Europeans, of all people, should know this very well.