Daily Note – Greek Roulette

Russian RouletteSummary:

Bust countries tend not to pay!

Greeks remain defiant

United States: Housing market sentiment slows

Australia: RBA Minutes: Easing bias reinforced

 

Good morning,

I have always maintained that Greece’s problem is not that it has defaulted but that it didn’t default enough! The EU creditors need to understand this basic idea. The country is bust, it can’t pay so what’s the point?

The point is contagion. It has always been thus. The EU has turned itself into a creditors paradise and this illusion can only be maintained by debtors pretending to pay the money back! So that’s the game until it isn’t.

I wish it wasn’t so, but it is.

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Global Macro-Daily Note 19th May 2015

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