Welcome to European Tribune. It's gone a bit quiet around here these days, but it's still going.
El-Erian from Pimco thinks that the creditors will have to enter the picture at some point. The ridiculous 20% yields are pie-in-the-sky for whoever bought them.

Since none of this Greek debt was initially sold for more than 5.9% or 6.2%, I suspect the payout to creditors will not be much beyond that.

So, the idea is to prevent a Greek default by making the creditors whole, as long as by whole it means the creditors don't lose money. The idea that people will be paid at market rates from IMF funds is perhaps fantastical.

by Upstate NY on Thu Apr 29th, 2010 at 11:03:02 AM EST
[ Parent ]

Others have rated this comment as follows: