This would wipe out the share capital of the ECB – the European Central Bank – and while its share capital would be replaced, it would be a huge embarrassment to the whole Euro area – any way you measure it – should debt problems in a country economically as small as Greece is – wipe out the share capital of the ECB.
It is like a bankrupt Tennessee should take out the US Federal Reserve System. Over there it would be unthinkable - over here it is not unlikely.
It might well be that Greece in reality is bankrupt but formally the debt likely will be restructured to carry no interest, be everlasting or whatever advanced bookkeeping they will come up with – to avoid making such write offs – and to spare Euro area tax payers from footing the bill already now.
Recommended Content
Editors’ Picks
EUR/USD rises toward 1.0700 after Germany PMI data
EUR/USD gains traction and rises toward 1.0700 in the early European session on Monday. HCOB Composite PMI in Germany improved to 50.5 in April from 47.7 in March, providing a boost to the Euro. Focus shifts Eurozone and US PMI readings.
GBP/USD eases below 1.2350, UK PMIs eyed
GBP/USD is dropping below 1.2350 in the European session, as the US Dollar sees fresh buying interest on tepid risk sentiment. The further downside in the pair could remain capped, as traders await the UK PMI reports for fresh trading impetus.
Gold price flirts with $2,300 amid receding safe-haven demand, reduced Fed rate cut bets
Gold price (XAU/USD) remains under heavy selling pressure for the second straight day on Tuesday and languishes near its lowest level in over two weeks, around the $2,300 mark heading into the European session.
PENDLE price soars 10% after Arthur Hayes’ optimism on Pendle derivative exchange
Pendle is among the top performers in the cryptocurrency market today, posting double-digit gains. Its peers in the altcoin space are not as forthcoming even as the market enjoys bullish sentiment inspired by Bitcoin price.
Focus on April PMIs today
In the euro area, focus today will be on the euro area PMIs for April. The previous months' PMIs have shown a return of the two-speed economy with the service sector in expansionary territory and manufacturing sector stuck in contraction.