From David Zervos:
(BN) *ISDA SAYS CREDIT EVENT HAS OCCURRED WITH RESPECT TO GREECE
(BN) *GREECE CREDIT SWAPS AUCTION TO BE `EXPEDITED,’ ISDA SAYS
“I’ve always said publicly that default is out of the question,” – Trichet
“There will be no default.” – Rehn
“People fail to see the costs to both Greece and the eurozone of a restructuring: the cost to its citizens, the cost to its access to markets. If Greece restructures, why on earth would people invest in other peripheral economies? It would be a fundamental break to the unity of the eurozone.” – Papaconstantinou
Its been a great 2 years watching this thing unfold and listening to lie after lie from European officials. While it has been a calm response in global markets today, there is some justice in the world. Those folks who bought Greek bonds lost their shirts – both accrual and mark to market folks. This is a clear victory for the Euroskeptics and I have no doubt that we will see the letters “PSI” in the European headlines once again.