Have your Phyzz yet? A Greek default will initiate a cascade of derivative events, and likely take down numerous TBTF banks.
"Greece is insolvent and will default on its debts, Fitch Ratings Managing Director Edward Parker said. The euro area’s most indebted country is unlikely to be able to honor a March 20 bond payment of 14.5 billion euros ($18 billion), Parker said in an interview in Stockholm today. Efforts to arrange a private sector deal on how to handle Greece’s obligations would constitute a default at Fitch, he said. “The so called private sector involvement, for us, would count as a default, it clearly is a default in our book,”
The “government debt-to-GDP ratio is 160 percent and rising so it can’t pay its debts,” Parker said. “Plan A is for the PSI negotiations to resume and reach a voluntary agreement and if that isn’t possible, I would expect an involuntary debt exchange to be set up and for them to complete that by that date in March.”
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