In Bailouts, Spain Will Be 'the Biggie':Strategist, I say there is no need to worry!!

'Cause there's a perception in the mkt that Greece will have to restructure, with or w/o the EU/IMF package.

 

I haven't seen a slow motion train wreck before, other than the current US admin. It's nice to know Europe believes in the concept of "Keeping up w/ the Jones"

Now, we set aside $1T. I think Greece took $150B, Ireland now request $90B. Greece is asking for more. And here's the fun part: Nuriel Roubini, aka Dr. Doom said if Spain needs to be bail out, there is no way out. He said on CNBC the other day that SPain is "too big to bail out" Today, some trader said $300 to 400B. And that along w/ Portugal, in which some economist said today it's almost a certainty, so what if the $1T is not enough?

And even if it is, what if they needs more after the 1st round, like the way Greece is asking for now.

Anyhoo, is there a web site shows the total amt. ea. country took from the $1T package?

And does Germany needs to commit more $$ if we are within the boundary of $1T? If so, she could jump ship and re-launch the Mark

 

That's a bit unfair - the efforts gave an excellent opportunity to add more Euro shorts!

 

Nobody has tapped the $1T package yet (I assume you're referring to the EFSF).

As to the Germans, their commitment to the EFSF may (or may not) increase if other countries end up pulling out. Lack of clarity is one of the issues with the EFSF, in fact, so who knows.

 

And a couple quarters later it looks a lot like that perception is spot on.

 

I have an off beat question: I heard thru the brokerage channels that some state have engaged in re-insurance on Greece CDS, meaning they co-guarantee with other guarantors towards those, who underwrites Greece CDS. Is it legal for these state to do so?

 

Huh?