Saturday, April 2, 2011
Friday, April 1, 2011
Thursday, March 31, 2011
Collapse of Portuguese Bonds Cause for Celebration
The Portuguese 2-year bond has hit 8.6%.
The country should be celebrating and praying that the yield will continue on its current trajectory path. That way when political issues are resolved, a plan to consolidate debt with favorable terms is established, the country ditches the Euro and reverts to a a domestic currency, a proposal for government stimulatory measures combined with some smart austerity is imposed, Portugal can buyback its debt at hugely discounted values.
The profit on this will be enormous. In fact, according to my calculations, if Portugal had only issued additional bonds a year ago, at the then lower market yield, the country may have been able to wipe out its deficit, simply by buying back the debt, at the hugely discounted values.
Wednesday, March 30, 2011
5 Things That will Remedy Portugal's Economic Meltdown
By Grant de Graf
- Dump the Euro and revert to a domestic currency
- Consolidate all debt plus a safety margin through a long-term loan from the IMF, with favorable terms
- Execute a fiscal stimulatory package, combined with smart austerity
- Provide a plan that will reduce the deficit by 40 percent over 6 years
- Achieve political stability through strong and clear leadership
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