From Mike “Mish” Shedlock’s Global Economic Analysis blog – ECB Stuck in Sovereign Debt Garbage, Seeks German Help to Unload It; Anger in Greece, Ireland; Germany Sets High Price for Bailout Changes:
Anger in Greece, Ireland
I keep waiting for Ireland to tell the EU and ECB where to go. With anger rising in Irish citizens, hopefully we will see some action. The Telegraph reports EU paralysis drives fresh bond rout…
What cannot be paid back won’t.
Thus, regardless of what Trichet, the ECB, or EU may want, Greece, Ireland, and Portugal are likely to default. The sooner that happens the better off Europe will be.
Thus, the one thing that makes the most sense is to restructure the debt and make senior bondholders pay the price. Unfortunately that is the one thing the ECB is foolishly attempting to prevent.
The ECB compounded its problems by unwisely purchasing sovereign debt hoping to stabilize yields. As a direct result it is stuck in PIIGS debt with yields exploding out of sight. This is the price of Hubris but don’t expect central bankers to learn a damn thing from it.