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| Bail out: the global economy sinks |
And, changing the headline to something altogether more sombre, 'The protection of the law' perhaps:
http://www.zerohedge.com/news/subordination-101-walkthru-sovereign-bond-markets-post-greek-default-world#comments
There is much convolution before one gets to this rather wipe-out possibility:
Before we proceed we would like to also point out one very curious Catch 22, in that if indeed Greece succeeds with its own exchange offer with the world not imploding, the natural next step would be for the other PIIGS to proceed with just such an exercise in order to cut their own debt load by up to 70%. Because while Greece may have the advantage, the question now become who will be second. Paradoxically, the more success this global strategy has, the deeper it sows the seeds of Europe's destruction, as more and more bondholders will actively shy away from all weak bonds first in the PIIGS, then in Europe, then in the world. Until at the end, there is no end-market demand, and the only buyer remains the central bank.
