Euro Crashing: Greek Default Looks Imminent9 September, 2011, 21:35. Posted by Zarathustra
Tags: Economy, Europe, Greece, Greek Tragedy
Via Zerohedge, there is chatter which says Greek default is imminent, and will be happening probably over the weekend. It is by no means unexpected as the CDS market has pretty much been pricing in almost absolute certainty that Greece will default. And that would have serious consequence as the European banking system very much exposed to the sovereigns…
And then, according to CNBC, the rumours of Greek default was “Rubbish”, and Greek Finance Ministry source denied it. However, we are also seeing headlines crossing saying that Germany is preparing to shield banks in the even of Greek default.
In another news, Jürgen Stark, Member of the Executive Board and Governing Council of the European Central Bank, will be leaving his job “for personal reason”, although Bloomberg is now reporting that Stark leaves after protesting on purchases of peripheral bonds. That certainly highlights the divide between Germany and the ECB, just like the epic rant Jean-Claude Trichet had yesterday. On the other side, however, it would be good for the ECB to lose one hawkish member.
Euro has been crashing for the week (and by the way for those who thought USD will be worthless: USD is strengthening), and now EUR/USD is below 1.38.