EURO-ZONE LEADERS early this morning opened the door for the immediate creation of a permanent rescue fund (becomes effective May 10; Monday) for distressed euro countries and for the European Central Bank to buy government bonds.What the above means is that Greece will essentially go bankrupt via technical default of Greek bonds! The EU set up this fund just hours ago knowing this is coming "next week," and they state it's to defend the euro! However, the opposite will take place just like the other recent bailout packages for Greece.
As the EU buys Greek debt with euro funds, intense pressure will smash the euro currency. Credit default Swaps (CDS)will skyrocket as Greece technical default will send shock waves through the bond insurance markets (CDS) causing wide spread panic through out the Euro Zone! As Spain, Portugal, Italy and other country bond markets start collapsing, the EU rescue fund will put extraordinary pressure on the euro currency by purchasing worthless sovereign
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