Europe Wasn't Destroyed In A Day
By Peter Tchir:Just like Rome wasn't built in a day, the Eurozone won't be destroyed in a day, but it is on a path that leads to eventual dismantling. What day will historians choose to pick as the day that the euro died?
- The day Greece or someone else first leaves the Euro
- The elections of May 6th
- The day Greece changed laws to retroactively add Collective Action Clauses and created a new class of bonds for the ECB
- The day that Greek Private Sector Involvement was finished and new bonds traded at 20% of par
Personally, I think the Greek PSI was what proved the Eurozone was doomed. Greece restructured debt, made different rules for different holders, and yet, the new bonds trade at 20% of par. It's like drinking non-alcoholic beer, why put up with the bitter taste with no useful result at the end? So these elections, while important,Complete Story »