Over the next 24 hours expect many post of this nature:
- DE JAGER SAYS ITALY NEEDS TO TAKE EXTRA GOVERNANCE MEASURES
- GREEK BONDHOLDER LOSS WILL BE 60%, ANA CITES VERHOFSTADT SAYING
Liesman spin on how 60% losses is not a CDS trigger event coming in 10 minutes.
In the meantime it gets worse:
There was no also sign of a deal in negotiations to reduce Greece's debt to private sector bondholders, and uncertainties remained over the size of a planned bank recapitalization and the scope of leveraging of the rescue fund.
And here comes the early damage control from Reuters:
Euro zone summit likely to give few numbers on crisis response
Euro zone leaders are unlikely to provide many hard numbers to flesh out their debt crisis response at a summit on Wednesday because the size of banks' losses on Greek bonds is still under negotiation and the bigger firepower of the bailout fund is tough to quantify, euro zone officials said.
Euro zone leaders may not be ready to name the exact size of the "haircut" for investors on Greek debt, but may indicate the desired level -- thought to be between 50 and 60 percent -- by announcing the intended size of public sector help and the target for Greece's debt-to-GDP ratio in 2020, officials said.
Leaders of the 17 countries using the euro meet on Wednesday evening to try to agree on a comprehensive response to the escalating sovereign debt crisis. The response is expected to include a plan to recapitalise banks, boost the firepower of the EFSF bailout fund and a new financing package for Greece.
But there are already doubts that concrete steps, including clear and hard numbers on the level of bank recapitalisation and the leverage of the EFSF, will be agreed.
Talks with private investors holding Greek paper on what losses they would be prepared to accept on a voluntary basis to make Greek debt sustainable are still under way.