Thursday, 22 September 2011

We’re All Greece

No, that’s not a stock.  It’s the CDS spreads on the PIIGS (Portugal, Italy, Ireland, Greece and Spain), and is up an astounding 60% 
It’s over folks, despite the protests of BNP (Banque Nationale de Paris).

‘We can no longer borrow dollars. U.S. money-market funds are not lending to us anymore,” a bank executive for BNP Paribas, who declines to be named, told me last week. “Since we don’t have access to dollars anymore, we’re creating a market in euros. This is a first. . . . We hope it will work, otherwise the downward spiral will be hell. We will no longer be trusted at all and no one will lend to us anymore.”
The bank denied it, of course, and the source “declines” to be named.
So what’s the truth?
It’s simple: We’re all Greece.

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