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Economy
In reply to the discussion: STOCK MARKET WATCH - Monday, 20 February 2012 [View all]Demeter
(85,373 posts)14. ART CASHIN: Beware The Ides Of March—Or Maybe A Few Days Later
http://www.businessinsider.com/art-cashin-beware-the-ides-of-marchor-maybe-a-few-days-later-2012-2
People are giving up on the Greek/Debtor deal and starting to whisper about structured default, according to UBS floor trader Art Cashin. Those whispers could get much louder ahead of Greece's March 20 deadline to repay 14.5 billion euros in debt...in the opinion of almost everyone, Greece cant be saved - at least not in their current state. That leads to the growing speculation that, behind the scenes, the EU and the IMF are scrambling to find some way to structure a controlled, structured default.
No one is sure how you might structure it. You would not only need to cordon off the current Greek debt, you would probably need to cordon off the Greek banks also to prevent a contagion to the whole European banking system. You might even need a multi-day bank holiday to prevent folks from rushing to withdraw Euros and rush them to safety across borders in Switzerland or elsewhere.
No ready solution jumps off the page. It would potentially be fraught with risk and might threaten the whole financial system. But, if they could pull it off, it would be perfect. Kind of like a financial version of cold fusion. The calendar is ticking and inaction is suicidal. We think the rumors and speculation will continue. Try not to bite your nails.
People are giving up on the Greek/Debtor deal and starting to whisper about structured default, according to UBS floor trader Art Cashin. Those whispers could get much louder ahead of Greece's March 20 deadline to repay 14.5 billion euros in debt...in the opinion of almost everyone, Greece cant be saved - at least not in their current state. That leads to the growing speculation that, behind the scenes, the EU and the IMF are scrambling to find some way to structure a controlled, structured default.
No one is sure how you might structure it. You would not only need to cordon off the current Greek debt, you would probably need to cordon off the Greek banks also to prevent a contagion to the whole European banking system. You might even need a multi-day bank holiday to prevent folks from rushing to withdraw Euros and rush them to safety across borders in Switzerland or elsewhere.
No ready solution jumps off the page. It would potentially be fraught with risk and might threaten the whole financial system. But, if they could pull it off, it would be perfect. Kind of like a financial version of cold fusion. The calendar is ticking and inaction is suicidal. We think the rumors and speculation will continue. Try not to bite your nails.
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