July 20, 2010
So, the euro-zone debt crisis is over, right?
Greece demonstrated last week that it can auction short-term debt with reasonable success and at a more modest yield than it would have to pay to access emergency backstops. The euro is back up at $1.30. Even Monday’s downgrade to Irish debt by Moody’s failed to have a lasting impact. Panic over.
Don’t you believe it.
Let’s not forget that Greece shelved plans to auction some one-year debt last week. Hardly long-term stuff. And the euro is up mostly because the dollar is down. As for Moody’s … where has it been for the past few months? Of course Ireland has a heavy debt burden. This is old news.
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