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the auction was oversubscribed anyway

Which means Greek debt wasn't as much of a problem as the business press would have had us believe?

Or that the romour-mongers had successfully lowered the price of Greek bonds while at the same time coercing the politicians to more or less commit to helping Greece, so that speculators could take part in the auction at a substantial discount, hence the oversubscription?

En un viejo país ineficiente, algo así como España entre dos guerras civiles, poseer una casa y poca hacienda y memoria ninguna. -- Gil de Biedma

by Migeru (migeru at eurotrib dot com) on Fri Mar 12th, 2010 at 06:03:04 AM EST
[ Parent ]
Oversubscribed three times. But who was buying?
by afew (afew(a in a circle)eurotrib_dot_com) on Fri Mar 12th, 2010 at 09:38:03 AM EST
[ Parent ]
It was oversubscribed but I would point out two things.

One, lots of American banks and hedge funds were trying to get in on the action so we can't assume that it was German or French banks/gov't institutions that were buying (although if they were they would be making a handsome profit on the interest payments).

Two, the interest is exorbitantly high and that's why Johnson thinks it is unsustainable for Greece, so the real key is, who buys when the interest rates drop--as they must?

by Upstate NY on Fri Mar 12th, 2010 at 10:04:30 AM EST
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