Monday, January 3, 2011

Think This is Discounted?

From the Telegraph;
European debt markets 'face second credit crisis'
"Banks alone must refinance about €400bn (£343bn) of debt in the first half of the year, but add in the more than €500bn European governments must replace over the same period, as well as further hundreds of billions of euros of mortgage-backed debt maturing and there is the potential for chaos in the credit markets."...and
"Mr Amore predicts a rush to sell assets, much like that which kicked off the first credit crunch in the summer of 2007. However, many fund managers and other large institutional investors are looking to reduce their exposure to bonds, leading to warnings that there will not be enough demand to buy all the debt banks and governments will need to sell."

I suppose the ECB will pick up that paper...which I guess must mean they are going to be printing Euro's. Maybe China will buy it...but then who's going to buy our debt? Oh yeah I forgot.

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