Another shoe has dropped in the euro's long, slow disintegration. Greece's S&P credit rating is headed down the proverbial tubes. The country that gave the world gyros and other fun foods can now knuckle under to Germany's demands for austerity or tell its sovereign debtholders to go jump in the Aegean. They'll probably choose the latter and say goodbye to the eurozone. That means buying a gyro will probably provide more practical utility than putting money into Greek bonds.
Like a house of cards, currency unions look stable until some tiny structural flaw gives way. The eurozone's Achilles heel was always the lack of a unified treasury that could levy taxes and issue debt without regard for any national parliaments. Did you get that Greek reference? Achilles heel, eh? If you didn't, you owe me a gyro. You'll be paying for those in Greek drachmas again soon enough.
Full disclosure: No positions in European currencies or bonds at this time.
Like a house of cards, currency unions look stable until some tiny structural flaw gives way. The eurozone's Achilles heel was always the lack of a unified treasury that could levy taxes and issue debt without regard for any national parliaments. Did you get that Greek reference? Achilles heel, eh? If you didn't, you owe me a gyro. You'll be paying for those in Greek drachmas again soon enough.
Full disclosure: No positions in European currencies or bonds at this time.
