Grexit, Schmexit

April 15, 2015 9:35 AM (UTC+8)

 

Judith Anderson’s 1947 version of “Medea” ran for six and a half months on Broadway, currently the record for a Greek tragedy. The Syriza party has had just 10 weeks on stage since the Jan. 25 Greek elections, and audience interest is disappearing. Asia Unhedged continues to think Greece is irrelevant to world financial markets.

After yet another cliffhanger week, the German newspaper Die Zeit reports that the German government is working on a plan for a Greek state bankruptcy in which the beleaguered country would remain in the Eurozone. The European Community could step in to help Greece in the event that it failed to meet its obligations, provided that it adopted EC-mandated reforms; if not, Die Zeit adds, the “German government would be ready to accept an exit from the Eurozone.”

Italy and Spanish 10-year sovereign spreads to German Bunds widened by all of 10 basis points this week on the prospect of Gratastrophe.

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