Tuesday 14 June 2011

Greece Receives Lowest Credit Rating by S&P

http://www.bloomberg.com/news/2011-06-13/greece-s-long-term-rating-cut-to-ccc-by-s-p-on-outlook-for-restructuring.html

Greece was branded with the world’s lowest credit rating by Standard & Poor’s, which said the nation is “increasingly likely” to face a debt restructuring and the first sovereign default in the euro area’s history.

“Greece will default -- it’s a question of when, rather than if,” said Vincent Truglia, Managing Director at New York-based Granite Springs Asset Management LLP in New York and a former head of the sovereign risk unit at Moody’s. “It’s a basic solvency issue rather than a liquidity issue. Only a debt writedown will do.”

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SS says

So we are getting close.

As I have said many times before - there is no way out for Greece.

I think EUR will take massive pain this year and next - Expect a STRONG USD

I have EUR Puts at 138 and 144 Strike with Year End Expiry

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