We Have A Deal! | ZeroHedge

As of last night the Greeks were getting out at 50 cents on the dollar, commencing a regional race to the bottom and likely, dissolution of the Euro experiment.  Courtesy of ZeroHedge, see here:

We Have A Deal! | ZeroHedge.

“We just may have a deal:

  • EU OFFICIAL SAYS DEAL REACHED ON GREEK DEBT-CUTTING PLAN: AP
  • ‘PRIVATE CREDITORS TO TAKE 50% CUT ON GREEK BONDS, AP SAYS
  • EU official, who wished to remain anonymous, tells Bloomberg that euro-area leaders are set to approve accord for 50% writedown on Greek bonds

If true, this means that Portugal, Ireland, Spain and Italy will promptly commence sabotaging their economies (just like Greece) simply to get the same debt Blue Light special as Greece. It also means that, at least according to Barclays, we have a CDS credit event, although we are certain that Europe would never announce this deal unless ISDA (complete determinations committee list here) was onboard, and corrupt as always. In addition, Greece was unable to generate a 90% acceptance for a 21% haircut tender offer. And we are somehow supposed to believe they can do it with 50%? Lastly, as a reminder, on September 14, Moody’s put SocGen, BNP and Credit Agricole on downgrade review. This will be the trigger..”

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