Are we reaching the end of the road?
Greece is now desperately selling some of its national assets.
This is the modern warfare – losing one’s assets via economic and political means. Will the Greek citizens be able to accept that or will they say enough is enough and walk away?
And we now have a new word in the investment library : Reprofiling
Reprofiling, soft restructuring, anything but the word “default”. But don’t they mean the same thing?
John Mauldin’s thoughts are in the video below:
If it does happen, the impact could be big.
European banks and ECB would be forced to take a writedown on their exposure to Greek debt.
Remember that a major part of the financial crisis in 2008 is not so much the subprime defaults, but the refusal of banks to trade with each other. This almost caused the whole financial system to freeze up and the governments had to inject massive liquidity into the system.
If money isn’t loosened up, this sucker could go down. ~ George Bush in Sep 2008