Yes, the ESM seems designed to screw the bondholders because the bailouts are going to be so much more expensive if they are not barbered.
It means in my mind that the biggies are sick 'n tired of footing the bailout bills, so they are giving the Mediterraneans fair warning. Get your houses in order by 2013 or suffer the consequences.
Really, it marks the beginning of the end of the EU.
Thing is, what bondholder wants to stick around given the proposal? I'd be selling my bonds like a SOB if the ESM remains in its present, admittedly vague to the hoi-polloi, form.
I mean, the Mediterraneans and Iberians, oh, and the Celts, don't have a prayer of getting their houses in order by 2013. Well, actually, they do, but the cost in social terms would be horrid. I am betting that they don't go the austerity route to the extent they need to.
Can you picture a bunch of Irishmen taking orders from Krauts?
The next few years are going to be very interesting in Euroland.
I am starting a small position in DRR for the pure hell of it.
It's Odin's Hammer setting the rules. |
