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Saturday, March 31, 2012

Greek Bonds Worthless

The Bundesbank announced yesterday that it will refuse to accept Greek, Irish or Portuguese sovereign/bank bonds; ie it will cease to lend to commercial banks that use Greek, Irish or Portuguese bonds as collateral. As ekathimerini points out:
"It also means that the credibility of the new bonds issued is no different to that of the old ones they have replaced."
This effectively kills the European peripheral bond market and, by definition, the current structure of the Eurozone.

It is now only a matter of time before Greece, and other peripheral nations, leave or are kicked out of the Eurozone.

1 comment:

  1. Anonymous5:54 AM

    I am waiting for the day Ireland is kicked out of the Eurozone---those people KNOW how to hold a WAKE!!!