Thursday, March 8, 2012

It's The Economy Stupid: Greece is the word

The deadline for the Greece debt exchange vote has passed at 2PM Central, 3PM Eastern.  Well, let’s be honest.  If they don’t get the vote they want, they are likely to just extend the offer.  So, it’s over, but it ain’t necessarily over.

 

Numerous news sources are saying that they have received at least a 70% majority of the vote.  So technically they can do a cram down, force the minority that did not vote in favor to accept the deal.  Technically, that would trigger a credit default event.  It has yet to be seen if they will get the 90% needed to avoid a default.

 

And that does not even begin to address Greece’s 20% unemployment problem, or their numerous other problems.

 

John Broussard

Assistant State Treasurer

Chief Investment Officer

State of Louisiana

Department of the Treasury

Ph:  225-342-0013

Fx:  225-342-9721

Email:  jbroussard@treasusry.state.la.us

 

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