As global equity markets gap downward the trading day after I suggested Watch The Pandemic Bank Flu Spread, can .. http://t.co/uuRaTRz3
As global equity markets gap downward the trading day after I suggested Watch The Pandemic Bank Flu Spread, can kicking will get progressively harder from this point on. As I have said in my many interviews, the only way out of this is debt destruction, which will crush big European banks leveraged up on debt marked at par of close enough to it. Having made clear that default was the only way out, Iceland has once again proven me correct. And just to jog the memory, I made it clear that default was the only way out nearly two years ago...Online Spreadsheets (professional and institutional subscribers only)Greek Default Restructuring Scenario AnalysisGreek Default Restructuring Scenario Analysis with Sustainable Debt/GDP Limits and HaircutsPortugal's Debt Ridden Finances: An Analysis of Haircuts, Restructuring and Strategy - Professional AnalysisThe Spain Sovereign Debt Haircut Analysis for Professional/Institutional SubscribersIreland Default Restructuring Scenario Analysis with Sustainable Debt/GDP Limits and HaircutsBloomberg reports: Iceland May Hold Krona Auctions Within WeeksThe island, whose banks defaulted on $85 billion in 2008, is moving into the final stages of its resurrection plan as the last vestiges of crisis management are gradually removed. Iceland’s decision, taken together with the International Monetary Fund, to impose capital controls three years ago was key to surviving the bleakest moments of the crisis and helped prevent an all-out run on the island’s assets, Gudmundsson said.“Without the capital controls it would have been much more difficult to ensure stability in the exchange rate, calling for much higher interest rates and an inability to shelter the domestic economy as well as we did,” he said.
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