- Why Greece Will Default Soon and What Happens Next (May 31)
- How to Play the 'Reprofiling' of Greek Debt via ETFs (May 17)
- Which Currencies Benefit on Rumors of Greece Dropping the Euro? (May 6)
There has been a lot of smoke and noise on the subject of Greece over the past 12+ months. Micheal Lewis (Sep. 9, 2010) had it right, and I stand by my May 31 call that we'll see some type of Greek credit event soon, with 'soon' being this year if not this summer.
At most the politicians may find a way to stretch this to next year, but it's very hard to imagine how this can be pushed out any further than that.
At most the politicians may find a way to stretch this to next year, but it's very hard to imagine how this can be pushed out any further than that.
A good summary on this topic from Kiron Sarkar over at The Big Picture:
ReplyDeletehttp://www.ritholtz.com/blog/2011/06/trichetsarkozy-1-merkel-0/
The USA has been left holding the baby due to the use of Credit Default Swaps it holds against Greece and things are going to get dirty.
ReplyDeletehttp://members.beforeitsnews.com/story/794/766/USA_Greek_Credit_Default_Swaps_going_bang_Include_video.html
Bottom line is the Greek debt is nothing on it’s own but these Credit Default Swaps means that the potential cost to the US economy may run into the hundreds of billon dollars so get ready to duck and cover.