"Omega Trading"- EU Will Not Let Euro Fail...
"Omega Trading": The EU will pull out all the stops to save the euro zone experiment.
Online, June 18, 2010 (Newswire.com) - "Omega Trading" believes that Greece will eventually default on its debt obligations because it is too highly indebted and the austerity measures its government has implemented will almost certainly reduce its gross domestic product to the point where it will be unable to avoid restructuring its debt.
According to "Omega Trading" analysts, restructuring of Greek debt could occur as soon as August, when the country is scheduled to receive another injection of funds from its aid agreement with the International Monetary Fund (IMF) and the European Union.
The firm said that the EU/IMF aid package was effectively a plaster being used to heal a gunshot wound. The criticized the dubious logic of attempting to make a deeply indebted country more creditworthy by lending it even more money.
"Omega Trading" believes, however, that.
Under the terms of the agreement, Greece must honor promises it has made to implement budget cuts and social security spending in order to qualify for the additional funds but "Omega Trading" believes that the EU will stop at nothing to protect the eurozone's financial institutions, many of whom have heavy exposure to Greek sovereign debt.
This, the analysts believe, will likely see the EU and the IMF disburse the funds even if Greece fails to meet the criteria.