FLASH: Greece Deal Supposedly Made
The Market Ticker ® - Commentary on The Capital Markets
Posted 2012-02-20 22:07
by Karl Denninger
in Flash
FLASH: Greece Deal Supposedly Made
 

Supposedly €130 billion and allegedly will get debt-to-GDP to 120% by 2020.

Not gonna happen folks.  This is basically the same deal originally talked about last year and the problem is that it doesn't account for the contraction in GDP when the deficit spending ends, nor the impact on tax receipts.

This may get them through the March date (they'll just suck down the funds and prevent a blowup on the imminent roll) but this is entirely insufficient as there are still the issues surrounding the banks and the pass-through effects are not accounted for.

More as I learn it, but my first blush is that while the reflexive move is northbound on the Euro and the incipient dump in the futures was arrested, people need to think this one though before breaking out the party hats.

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