ECB head [6]Jean-Claude Trichet: July 27, 2011 [7]:
"Speculating on Greece defaulting is a certain way of losing out. Such a speculation would be a sure-fire way of losing money given the decisions taken last Thursday"
And what happened next to Greek bond yields (and inversely, Greek bond prices):
[8]
-> Those who 'speculated on Greece defaulting made a non-losing 70%+ return'. Whatever happened to never bet against central banks?
Fast forward:
ECB head Mario Draghi, July 26, 2012 [6]:
"Within our mandate, the ECB is ready to do whatever it takes to preserve the euro. And believe me, it will be enough.”
We will provide an update of how the euro fared in the aftermath of this statement, sometime around the end of July 2013. We have a feeling betting against the ECB's credibility will once again generate 70%+ returns.