However, the German ECB representative Jorge Asmussen said yesterday that “he backs the ECB buying periphery debt as a means to prevent the disintegration of the Euro” (ZeroHedge). Likewise Christan Democratic Union lawmakers in Germany said that they support making “small concessions” for Greece as long as they lie within the existing program. These comments appear to mark a change of heart for Germany and could mean more bailouts for Greece in the future.
In the US Warren Buffet slashed his exposure to municipal bonds by terminating CDS agreements on $8.25 billion of debt. Buffet likely closed out the trades for a loss, suggesting he only believes the market will get worse from here. Buffet still holds CDS exposure to roughly $8 billion in municipal bonds which he cannot terminate prematurely.