Posted by WARREN MOSLER on February 9th, 2012
As previously discussed, once Greece does it, it’s compelling for everyone else to do it.
It’s the classic fallacy of composition.
When someone stands up at a football game to get a better view,
it quickly makes sense for everyone else to stand up as well.
Yes, you can say they all are better off if everyone stays seated,
but once one goes, all go.
So expect a serious shock wave to quickly depreciate all euro debt.
Feb 8 (Reuters) — Ireland would see any European Central Bank contribution to the restructuring of Greek debt as a precedent that would boost Dublin’s efforts to ease the burden of its own sovereign debt, the country’s finance minister said on Wednesday…