Thursday, July 07, 2011

Portuguese Bonds to retain face value at EU taxpayers expense!

I was not certain what Trichet meant earlier when he announced that rules regarding collateral had been suspended for Portugal, when I reported on the ECB press conference today.

Thanks to this article in EUobserver, I now fully understand, read here.

In layman's terms, even if the oligopolist US credit rating agencies declare Portuguese Bonds as having no more value than toilet paper, the ECB will accept them as collateral at their full original face value.

EU tax payers, will, of course, have to eventually stomp up the difference between such widely varying sums, even if they are used as toilet paper and delivered covered in Trichet's own merde!

EU shenanigans are getting increasingly disgusting by the day! I am sorry if I offend by illustrating this fact in my comments.

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