(By Karl Denninger) I thought it might take at least 24 hours.... I was wrong.
Spanish bondholders woke up rather quickly to the fact that they were just forcibly demoted down the seniority chain (which is blatantly illegal, incidentally, but who cares when you're the government -- right?) just as happened with GM.
Italian yields moved higher, as everyone now expects them to be next, and to wind up with the same "deal".
Meanwhile Greece joined the party in demanding the same terms as Spain got, which remain a bit murky (in terms of what they actually gave up.) That ought to be fun too.
There is a certain logic to such a demand, incidentally. If everyone is the same in the EU (remember, no border controls, no tariffs, etc) then why should one "nation" that gets a bailout get it under worse -- or better -- terms than any other?
That's pretty tough to argue against if, in fact, "we're all one big, happy family."
Of course if they're not, then what are they doing over there?
Oh, you mean there are many PIIGS, and some are "more equal" than others at the trough? And one big "G" is supposed to fill the trough -- now and forever -- in exchange for.... what, exactly? Not deciding to simply take what they want?
Why do I get the suspicion that this isn't exactly a stable state of affairs?