The last few nails in the coffin are being driven in by the German-led Troika and soon Greece will be in 100% vassal state mode.
Earlier today, tucked away from the public’s eyes, there was another round of drama involving Greek securities this time focused on Greek senior bank bonds which promptly tumbled back to post-referendum/pre-bailout #3 levels.
The catalyst was Friday’s pronouncement by Jeroen Dijsselbloem who said depositors will be shielded from any losses resulting from the restructuring of the nation’s financial system, but that senior bondholders would certainly be impaired and probably wiped out. In other words, once again the super priority of various classes has been flipped on its head with general unsecured liabilities ending up senior to, well, senior bank claims. Continue reading