Commented on “Bond Squawk”

Rom,

Good post & I think you’re spot on. One thing that this does make me wonder is if this may be the first step in setting up a private placement market for wayward sovereign debt. Kind of like a shelter for disavowed pets – just not as cute and definitely doesn’t tug at your heart. But in order to set it up, they’d need to backstop and lend them money now – at discounted rates of course.

I don’t know about you, but I think the EU leadership as well as leaders of many of the European countries are really playing with fire. If this goes wrong (and I think the probability of it going wrong is significant), the *concept* of credit may cease to exist as nobody will believe in credit worthiness. And nobody will be there to backstop them.

Cash & carry could be the name of the game…

Originally posted as a comment
by professorpinch
on Bond Squawk using DISQUS.

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1 Comment

Filed under finance, government, International, macro, Markets, Way Forward, You're kidding

One response to “Commented on “Bond Squawk”

  1. Pingback: Like The Movie “Syriana,” It’s All Connected « Deep Thoughts by Professor Pinch

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