So it looks as though the Greeks will default for a few days as part of their latest bailout package. The ESFS will set up a facility to allow the Greek banks to fund themselves through that period…
The market was a bit spooked by the initial comments from Juncker tipping a selective default but acted quite maturely when it was put into context and the euro rallied strongly despite default being part of the package.
That certainly validates the Druckenmiller hypothesis, doesn’t it?
Maybe the US missing the debt cut-off of August 2 wouldn’t be such a disaster if it led to a large, sustainable package of structural reforms…
I’m just sayin’…