Spain - Out Damned Spot

Via Mark J. Grant, author of Out of the Box, “And it is a mark of prudence never to trust wholly in those things which have once deceived us.”                      -Rene Descartes Spain If you own the debt of Spain; sell it. If you are thinking about buying their sovereign debt; don’t. I hope that is clear enough. I don’t believe that I have left out any corner of my thinking or that there is any wavering on my part. All of the new Spanish debt will carry Collective Action Clauses which gives Spain the right to force bondholders to their knees. This is reminiscent of Greece and we should have all learned the lesson from that experience. Then there is what Spain certainly might do which is to retroactively pass CAC’s when expedient for the nation so that all Spanish...