Lawrence Person's BattleSwarm Blog

Apparently so. Fitch has downgraded Greece’s credit ranking to selective default. And all this despite the deed being all but done.

It turns out that Greece forcing haircuts on recalcitrant bond holders via the “Collective Action Clause” automatically triggers credit default swaps, the financial instruments that helped bestow such laughter and joy unto the world economy in 2008. There’s such a fine line between “bankrupt” and “solvent.”

But thanks to the rest of the EuroZone ponying up money to keep Greece solvent, Greece’s national debt will decline…from 120% of GDP, to a tiny, minuscule, almost-impossible to see 117% of GDP. In 2020. You know, the same year I’ll be enjoying a regular threesome with Olivia Wilde and Megan Fox.

But the bailout is accomplishing its primary goal: Keeping the whole thing from collapsing while Eurocratic insiders get to pretend everything is OK long enough to dump their losses onto taxpayers and continue to milk the rubes just a little bit longer.

And there’s already talk of another bailout being necessary before the ink on this latest batch of fiat Euros was even dry. A new record!

Tags: Euro, European Debt Crisis, Greece

This entry was posted on Monday, March 12th, 2012 at 10:32 PM and is filed under Economics, Foreign Policy, Waste and Fraud, Welfare State. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.