http://enpassant.com.au/?p=6535 Revolutionary reflections on this world of ours Wed, 08 Sep 2010 11:07:31 +0000 hourly 1 http://wordpress.org/?v=3.0 http://enpassant.com.au/?p=6535&cpage=1#comment-21138 CrisisMaven Mon, 08 Feb 2010 17:20:29 +0000 http://enpassant.com.au/?p=6535#comment-21138 In and of itself a Greek bankruptcy or bond default should -in theory- <a href="http://crisismaven.wordpress.com/2010/01/24/will-greeces-default-bring-down-the-euro/" rel="nofollow">not affect the Euro as such very much</a>, Greece being maybe 3% of the total. However, just as a Californian bankruptcy (probably inevitable, <a href="http://crisismaven.wordpress.com/2010/02/01/bloom-of-doom-iii-cities-going-bankrupt/" rel="nofollow">large US cities at least are already contemplating insolvency</a>, ten idividual states may well follow) would reflect badly on the "state of the Union" as a whole so would the default of on EU country, coupled with the rising interest rates and thus further destabilisation of the remaining over-leveraged member states, make investors wonder when <a href="http://crisismaven.wordpress.com/2010/02/08/bloom-of-doom-v-we-have-control-of-the-ship-we-have-a-plan/" rel="nofollow">sovereign default across the board</a> is likely. Thus they wouldn't commit themseves to bonds of longer maturity and that's the beginning of the end. In and of itself a Greek bankruptcy or bond default should -in theory- not affect the Euro as such very much, Greece being maybe 3% of the total. However, just as a Californian bankruptcy (probably inevitable, large US cities at least are already contemplating insolvency, ten idividual states may well follow) would reflect badly on the “state of the Union” as a whole so would the default of on EU country, coupled with the rising interest rates and thus further destabilisation of the remaining over-leveraged member states, make investors wonder when sovereign default across the board is likely. Thus they wouldn’t commit themseves to bonds of longer maturity and that’s the beginning of the end.

]]> http://enpassant.com.au/?p=6535&cpage=1#comment-21137 Dave Bath Mon, 08 Feb 2010 10:49:57 +0000 http://enpassant.com.au/?p=6535#comment-21137 Did you see Kaz's cartoon on this in The Economist? http://www.economist.com/daily/kallery/displaystory.cfm?story_id=15464363 Did you see Kaz’s cartoon on this in The Economist?
http://www.economist.com/daily/kallery/displaystory.cfm?story_id=15464363

]]>