Rumor Of Greek Default As Early As This Weekend Pushing Yen

The various Yen funding crosses have suddenly seen a bit of a hiccup (but fear not: it only means far greater USD shorting instead) following a rumor that Greece may default as early as this weekend. While we think there is absolutely no possibility of that happening, a far more interesting piece of news comes from Finland, where the recent electoral upstart Soini from the True Finns party has said that the May EcoFin meeting would discuss an "entirely different" solution to the debt crisis, than the previous one. Specifically, he was quoted by Reuters as saying the best solution would be one of bank recapitalization whereby banks, and not taxpayers, bear liability. Is Europe about to pull the plug on taxpayer funded bailout for good? And if so, does the European financial system have enough a buffer to absorb what will certainly be hundreds of billions in capital shortfall. Looks like May is shaping up to be another rescue Europe month... just like last year.


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