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why the fuck do you keep on putting in my mouth things I haven't said?

Of course they'd be in deep shit, as in officially bankrupt, but then there's nothing preventing their regulator from taking them over and letting creditors live with that - especially foreign creditors in a foreign currency (they'd probably get access to the USD portfolio, which are probably decently sound, and that would actually be settled relatively easily). The  euro-side bankruptcy would be a good thing, by forcing the dezombiefication of the bank, but that would make the wrong people unhappy - again, less of a problem for France, which could nationalize the local bits and just let the international stuff become a bad bank, à la Dexia (where Belgium took back the retail/local bank), but without the state guarantees.


Wind power

by Jerome a Paris (etg@eurotrib.com) on Sat Mar 17th, 2012 at 07:44:07 PM EST
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Because you keep pretending it was just the US that had a problem here. It was the Europeans who were rescued from default.

There are three stories about the euro crisis: the Republican story, the German story, and the truth. -- Paul Krugman
by Carrie (migeru at eurotrib dot com) on Sat Mar 17th, 2012 at 07:46:55 PM EST
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