May 04, 2010

http://market-ticker.denninger.net/archives/2262-Greek-Dog-Squeeze-Now-Accepted-At-ECB.html

May 3 (Bloomberg) -- The European Central Bank joined the international rescue of Greece, saying it would indefinitely accept the country’s debt as collateral regardless of its country’s credit rating, underpinning gains in the bond market.

For the uninitiated this means that the ECB will accept DEFAULTED Greek debt instruments, should it come to that.

More bluntly, if Papandreou's dog drops a deuce in a box and he presents it to the ECB claiming that it's worth $10 billion, the ECB will in fact issue $10 billion in real, honest-to-God Euros against that box - no matter how badly it smells.

Congratulations Europe, you have now demonstrated that your central bank is and has been issuing dog turds disguised as Euro bank notes.