UNHOLY ALLIANCE!

The government surplus/deficit of Portugal, Italy, Ireland, Greece, United Kingdom, Spain (PIIGGS) against the Eurozone 2000-2010. Data from Eurostat. (Photo credit: Wikipedia)

Following the completion of the Greek PSI, Greece will have not 1, not 2, not even 3 distinct debt classes of debt, but 7! One country, seven tranches of debt, in order of seniority: 1) EU-IMF Loans; 2) EFSF Loans; 3) SMP GGBs; 4) New GGBs; 5) T-Bills; 6) Old GGBs and 7) Other loans.
So when your bankster sells you sovereign bonds from now on, get some color on tranching, subordination, ranking, priority, security, guarantee, collateral, and in general everything else that is now forever gone in this "swapping" world.
And this is certainly not just Greece. With all of Europe undergoing the same stealthy "unsecured" debt-to-taxpayer higher lien restructuring, the same will happen in Portugal, Ireland, Spain, Italy, and eventually every other country, as the only real source of cash to keep the European once dream now nightmare alive are taxpayers, who directly have to fund out of pocket states...
Of course, this is nothing new: this is precisely what has been happening for the past 60 years in "banking mafia area", with Fractional reserve, Shadow Rehypothecation, Infinite Leverage, And Why Breaking The Tyranny Of Ignorance Is The Only Solution.
Because people happen to be lazy, nobody really feels like doing their homework until it is too late...

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