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Lets see if I understand this.

In order to break Spain the speculators need to amass more bets on it failing then the EU structure is willing to counter? And if (and only if) they do so the speculators stand to gain a lot of money? And at the same time borrowing money is dirt cheap due to recession?

Yes, that looks like a really easy way to make billions (though you need billions to start playing).

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by A swedish kind of death on Sun Apr 10th, 2011 at 01:55:01 PM EST
The US TBTFs should have plenty of almost free money at least through June, and Bernanke could always assert that withdrawing Quantitative Easing risks a financial collapse in order to tide the TBTFs over until they have made their killing on the breakup of the euro-zone. And all would vociferously deny that bets on euro-zone break-up had anything to do with continuation of QEII. Of course the Fed would never be so rude as to require that the proceeds from such bets should go to bank stability. They obviously will need to be paid out as bonuses so the 2012 elections can be financed.

"It is not necessary to have hope in order to persevere."
by ARGeezer (ARGeezer a in a circle eurotrib daught com) on Sun Apr 10th, 2011 at 03:12:24 PM EST
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