Greek default is inevitable
February 14, 2012
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According to Zero Hedge, who quotes several rating agencies, Greek default is by now inevitable. According to Handelsblatt, the agreement with private creditors (Private Sector Initiative) seems to be insufficient. Greece will then try to make the “voluntary” write-down mandatory, which will technically imply a default, with all the unforeseen ramifications.
… the rating agencies have long warned a Greek default is now inevitable, and a CDS trigger will follow. The only thing that there is massive confusion over is whether and how this event will impact everyone else, and whether it will lead to an expulsion of Greece from the Euro zone.
We are certainly heading into uncharted territory!