Greece may subside for now but the other PIGS remain. It is a similar story in many of those countries. The citizens are unhappy at the forced austerity measures being imposed from outside. Outside the turmoil that it caused to markets, Papandreou’s call to let the people decide was democratic was it not? And who wants that!
Now that the EFSB can issue bonds using the CDO structure from the parallel universe, think about potential buyers. Other governments are balking. MF global, one of the bigger players in the sovereign Euro debt market is gone. Who will take their place?
In 2008, it was the fear of banks collapsing under debt burdens. In 2011 it is that of countries collapsing under debt burdens. In 2008, the world was learning of the leveraged speculative nature of credit default swaps and collateralized debt obligations In 2011, the EFSB appears to be using these structures. But it is the season.
Paul Tudor Jones (and others) appear to see a huge buying opportunity in the latter half of this decade. Who is buying now?