Thursday, October 27, 2011

The Banks Have Volunteered (at Gunpoint) To Get 50% of Their Money Taken - No Credit Event???

"So, the European joke has come full circle. Indebted nations borrow more money to bail out other indebted nations who ask insolvent banks to cut a 50% off deal on the loans that were given to them, but the insolvent banks will then have to raise capital which the will of course borrow from the over-indebted nations whom they just gave money to. Get it? Problem solved - BTMFD!!!

The rally is based off of bullshit and an inability to count. After the voluntary haircut (volunteered at gunpoint, may I add), Greece will still have roughly 120% debt to GDP ratio with a declining economy. Unsustainable still. I would fade this rally with careful stops..."

at http://www.zerohedge.com/contributed/banks-have-volunteered-gunpoint-get-50-their-money-taken-no-credit-event