Signature Coins & Bullion

In 2010 the Eurozone ran banking stress tests of the major financial institutions, assuming a maximum loss of only 17% on government issued bonds. at the same time this was occurring, Greece was already negotiating losses, or what the professionals call haircuts, on certain bonds.

Most of them had been issued through the health ministry to buy medical equipment and refurbish hospitals. The haircuts were as much as 40%, against the “worst case scenario” of 17% in the so called stress tests.

Business Insider has now highlighted, just over one year later, what those haircuts will mean: a shortage of medicine.