Ahead of Sunday’s election in Greece, central bankers stand ready, again. With all the water central banks have expended out of their fire hoses over the past few years in their attempt to ‘do something,’ I can only think of magic candles. Those candles you blow out that only flare up again immediately after. The western world is choking on excessive debt and a euro bond, banking union, broad deposit guarantees, enhanced lending programs, QE and various liquidity facilities only further socialize risk and try to ram down the throat of economies that need to delever to go out and borrow more. Bondholders have been put on quite a pedestal as they are the only beneficiary of this ridiculous magic candle game. With respect to the reuters story on central bank readiness ahead of the weekend, it is bank runs that they seem most immediately concerned about.
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