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Europe pretends to solve financial crisis, markets go bonkers

Eurozone finance ministers are working hard to solve the problems

The “agreement” is that bondholders will take a 50% chainsaw, er, “haircut” on their Greek debt. In yet another stunning “agreement”, this will somehow not trigger credit default swaps – in other words, they’re not really default swaps any more, now they’re “whatever we call thems when we want them to be whatevers.”

So, even though a multitude of institutions will loss huge amounts based upon the 50% Greek bond writedowns, the markets are in full manic partying mode because the credit default swaps (pseudo-insurance on the bonds) are no longer operational. This is what we here at Polizeros call the MSU system of finance, Making Shit Up.

I don’t think this is going to work. Drinking yourself sober never has, and this will be no different.

Surely this time will be different.

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