Wonder if the ‘New Bonds’ are Mosler bonds?

*DJ Greece, Creditors Close To Agreeing Step-Up Coupon Of Around 3.5%-4.6% -Source
*DJ Greece, Creditors’ Deal Would Have Average 4%-4.2% Coupon On New Bonds -Source
*DJ Greek Creditors’ Real Writedown Seen At 65%-70% Under Deal Terms -Source
*DJ Final Details On Greek Coupon Deal Still Under Discussion, May Change
*DJ Greece Creditors Deal Could Have Grace Period Of About 10 Yrs On Principal

6 Responses

  1. It seems that some low percentage (hardly 50% or so?) signed up to agree “voluntarily”. Doesn’t this imply that Greece anyway needs a default to achieve what they call sustainable debt levels?
    As far as i understand some parties do not want to agree to any write down and are interested in such default because then they can use their cds. How do you see that?
    Looks to me if cds-s will be triggered then the process will all be less orderly.
    Greece seems to have decided to stay in the euro anyway, for political reasons.
    From what I hear with regards to Mosler bonds or not the decision is not made in Athens, but in Berlin/Brussels/Frankfurt.

    1. and after it’s ‘resolved’ seems the quants start applying the same ‘sustainability maths’ to Italy and start saying it needs haircuts for long term sustainability.

      1. @WARREN MOSLER, Yes, and Ire and Port also would like some relief and every time euros vanish. Those ez govt bonds won’t be popular, but euros are getting scarce. Wonder how that combination will play out for eur/usd.
        Stuffing domestic banks full with these bonds already gave the first rumors that capital requirements of 9% by end of June 2012 will need some change.
        I also wonder how they go to cope with pensions in this kind of corporate model for countries. I am aware this is a productivity problem in real terms, but they make it a money problem on top. In several countries already in the ez they started to cut on pensions. This is quite a hot item nowadays in Europe. Looks like unemployment allowances and all kind of other social security etc will soon be cut.

        PS: don’t forget Merkel studied physics!!

      2. @walter,

        thought it was chemistry that Merkel studied?
        Either way, once people get in to politics, they display an amazing ability to compartmentalize logic.

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