"If money isn't loosened up, this sucker could go down" - George W. Bush warned in September 2008
Monday, May 10, 2010
Is Greece the new Argentina, the new Iceland, the new Lehman? No. Greece is Europe's Freddie Mac. Both are insolvent entities with a strong implicit guarantee. Both will require new regular subsidies needed to preserve the fiction of going concern. In 2008 one of the sources of PIMCO's outperformance was a bet on Freddie Mac's MBS. PIMCO has called that bet "shake hands with the government." Is it the time to shake hands with the government of Greece?
Posted by themoneydemand.blogspot.com at 2:59 AM