Things are on the slide ofr the Greeks. bond market is looking for its pound of flesh for any more omney. And the vultures smell the chance to speculate.

The question of the moment is who is taking the other side of any CDS speculation?

Carl,

I am just someone who reads a lot and thinks as clearly as I can about what I read. My prejudice is to feel strongly that economic theory is flimsy and more like medieval theology than science. Stong on internal logic VERY thinly connected to actual reality. But serving those who follow it by justifying their position and wealth.

I am hoping this is the moment when liberal economic hegemony meets its reformation.

I think the Greeks default, and the French and German Banks get a bail-out. (British & Swiss Banks left wih a bruised lip)

All Euro-politicians find a way to put a shine on it, (no IMF involvement to embarrass the European bank), taxpayers (unsecured) lenders of last resort -as ever.

I too wonder if the Greeks could start to print Drachmas again. Seems so difficult to get there from here and yet the alternatives seem even less likely.

As for France I don't have any figures for how they are really doing. I would love to know.

I suspect Soc Gen is very exposed to Greek, and Spanish debt.

IanG,

Sorry, to be such a misery. I don't mean to be. In fact I'd like not to be.

What you say about CiF is a shame. I always enjoyed commenting on the Guardian. I haven't been doing so much recently because the articles seem to be less and less on the topics that seem of concern and relevance to me. What the Guardian thinks is important seems to be diverging from what I think.

If things start to go economically wrong again I am sure that will reverse.

A hung or ineffectual parliament will ensure that the bond market cuts up a bit rough for us.

Seriously, this sounds bad, really bad. Thanks for describing what could happen and how the vultures are making a mint out of all this. yet the MSM (with the exception of the FT and Hilton in the Evening Standard) fail to mention the elephant in the room.

Good job you have this blog as CiF is becoming impossible to follow these days, so much dross with very few gems to dig out.

Cheers

What a joke.

There is no bail-out coming from Germany, and France is really as broke as the PIIGS. The IMF deal was only put on the table because no-one could take them up on it.

I am sure they are printing 2010 drachmas as we speak.

In a month's time I want to book our summer holiday on Kefalonia (and do my bit for the Greeks); I do not expect to pay in Euros.