One of Brian’s Favorite Quotes
Is life so dear, or peace so sweet, as to be purchased at the price of chains or slavery? Forbid it, Almighty God! I know not what course others may take but as for me; give me liberty or give me death!”
— Patrick Henry (1736–1799)
Everyone Agrees: The ECB Is About To Make The Biggest Decision In Its History
AP/Riccardo De Luca
All a politicians in Greece (even a mainstream ones) have pronounced they wish to renegotiate a bailout agreement.
If a rest of Europe doesn’t behind down and determine to this, afterwards a ECB will have to make a outrageous decision.
Unless Greece chooses to leave a Euro area, that we doubt will happen, a Greek exit will need a rest of a re-gion to lift a nation out. The resource for this will be a ECB incompatible a Greek executive bank from TARGET2, a informal payments and allotment system. Although this competence demeanour like a technical preference about financial plumb-ing, a ECB will rouse this to a Euro area heads of state. It will be a many critical domestic preference given EMU’s launch.
And this was from Jefferies’ David Zervos progressing this week…
Basically, a preference to close a Greeks out of a Target2 is a singular many critical decision that will be done in a story of EMU. Can Europe send 65b to Greece to summation a banks when after they opinion down a MoU? Can Europe mount idly by when Tsipras calls for an OSI on a 240b of debt hold by a ECB and IMF. Can Europe watch Tsipras sinecure 100,000 polite servants? And a genuine doubt is – can Europe continue to watch Greeks lift Euros out of a banks, thereby holding a Eurosystem Target2 bearing to 150b, 200b and afterwards 250b but slicing off a BoG?
Two people on Wall Street observant something identical? It’s apparently a really large deal.