Are Central Banks Preparing For Greek Default?

The latest in a long series of liquidity pumping exercises has apparently saved all of Europe’s banks and further crushed already miserable short-sellers in US stocks and banks, but it may be serving another purpose: Setting up for an imminent Greek default.

The tirelessly typing Peter Tchir of TF Market Advisors laid it out in an email blast a moment ago. The liquidity facility, the promise to keep Greece around the eurozone, even Tim Geithner’s proposal, reported by Reuters, that Europe institute a leveraged bailout package, a la TALF — all are consistent with the idea of building the fences necessary to contain a Greek default, which still seems inevitable.