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Wednesday, March 7, 2012

The Greek bailout / default / rescue / collapse Tragi-Comedy Act 1 Trillion (Euros)

Blogman's Notes:

The Greek Debt Drama or Comedy depending on your viewpoint is now rolling towards its Trillionth Act. After the last 999 billion deadlines have come and gone, now another one is being announced. I don't know whether we should be laughing or crying; I'm sure most of the Greeks are crying and so will a lot of Portuguese, and Spanish and Italians in the not too distant future. The following Reuters report is another one of those Greece is defaulting - Greece is not defaulting variety but what is significant is that a value, 1 Trillion Euros has been placed in the event of a Greek default. Knowing the PTB and the media, this number is probably a few trillion too little. This charade will only be concluded when the PTB finally throw in the towel and blame the collapse of the Global Financial System on the lazy Greeks and Italians and Spaniards.

(Reuters) - Athens turned up the heat on its creditors on Tuesday as it sought to secure a bond swap that will cut its mountainous debt, while the main bondholders group warned a disorderly default would cause more than a trillion euros of damage to the euro zone.

Greek private creditors have until Thursday night to say whether they will participate in the exchange that is a key part of a bailout program to helpGreece manage its wrecked finances and meet a debt repayment on March 20.

A number of the biggest bondholders are signing up but despite the dire warnings, a clutch of Greek pension funds and some foreign investors rejected the offer which will see investors lose almost three-quarters of the value of their holdings and lop about 100 billion euros off Greece's debt. 

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