The Troika will kick the can to December, Jens Nordvig of Nomura says and will set the stage for a Greek default at that time. He was interviewed by CNBC.
Nordvig has a 1.30 target for EUR/USD at year-end but says we could undershoot that mark.
The hope had been that the Troika could keep Greece afloat until 2013 when the ESM comes into force but it looks like that will not be the case, judging my market prices for Greek debt…
Germany has been quietly setting the stage for an eventual Greek default. The key is pulling a default off without setting off dominoes in Ireland, Portugal and, most importantly, Italy and Spain. Those last two are truly too big to fail…