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Greek 3 Year Bonds Yielding 11.3%, As German Party Member Says Greece Needs Further Austerity Or Should Leave Eurozone
Move along, Greece is still "contained." There's probably 5 corporate names in all of the US that are yielding that much right now. And to add jet fuel to the flames, Handesblatt reports that a German party member says Greece should institute "further austerity measures or leave the eurozone." Goodbye euro.
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Chart for context please.
Err...
Would someone please explain to me why Germany shouldn't leave the EU?
Seems to me like they can loan money to profligate spending governments w/o sharing the currency risk, if they so desire.
Obvious to the financial markets is the fact that Greece, Iceland, Dubai, etc - are simply the first canaries in the coal mine to go down.
There's no stopping the daisy chain of defaults, bankruptcies, and debt repudiations now. The genie is out of the bottle. The cat is out of the bag. Shit is hyper-flating.
30 years of deflation, political crisis, lawsuits, special prosecutors ....
OR
2 years of hyper-inflation, political crisis, and jubilee ...
Take your pick.
Both senerios have political crisis. win-win for Dr. No.
Chaos will reign supreme.
Before the Euro we had the FRANK, the bill where a lot more beautifull then the Euro's are now :)
Can't wait to see them back :)
You can already get them back by buying gold 20 francs ;)
Frank's not here, man. Neither is Dave.
Does Greece actually have any Volcano's like Iceland?
We already know how Iceland repayd Europe...
EUROPE WANTED
CASH
ALL THEY GOT WAS
ASH
I said it before, Germans want to push Greece into either more reforms or out of eurozone.
Surely, that is a given?!?!?
A 1% interestrate increase is about 397 million a day on US Debt. We will see 1-2.25% increase in US debt in the next 12 months. It will only be a start in rising rates. I don't know if the Greek circus will be enough to distract the world from US problems.
"We will see 1-2.25% increase in US debt in the next 12 months"
Unless they orchestarte a massive crash in equities and scare people into US long bonds.
just kick the greecy dagos out
Not to go all Cato the Elder on you, but, "Greece must be destroyed!"
With the spectacle of the chaos and suffering of the Greek people after a sovereign debt default (and perhaps the disgrace and dismissal of the Greek political class), perhaps the USA will face its own debt crisis.
If Greece gets off easy, the USA will assume we can continue to fake fiscal responsibility.
The consequences of a Greek default are unknown and frightening. The consequences of a US default are immeasurably worse. We must control (and shrink) the US govt soon.
We need to the spectacle of Greece's (financial) execution to "encourage the others" as a French admiral once noted.
ZIRP and QE will be Benron's preferred path until his bitter end. The US doesn't change that policy until we eliminate the FRB and the banksters.
Can you smell it? Burning Greece, Ireland, Portugal, Dubai, Spain, UK, USA, Japan, Iran, Iraq, DPRK. Its the smell of fiscal failure and the ultimate cure - global reset, alias major conflict. Get the popcorn out, or the .45s, your choice.
People are reading this wrong. If Greece is pushed out the euro (and re-issues drachma) then this will be very bullish for the euro as it is purging itself of weaker members first. It may even be a good signal for the next return to a DX bear market...
A better approach might be to stay in the Euro but also return the Drachma. This is essentially what Switzerland does even though it is not an official Euro member. Gives Greece the flexibility to convert Drachma to the Euro reserve currency at a predefined rate set to achieve capital controls. A stealth default may be better than none at all.
yeah. i dont see the 3yr trading with an 11 handle. 2yr traded thru 10, 3yr as far as i can see on my bbg is still underneath 10 barely (9.932%). So to echo the previous request... do you have a grab to verify?
Could be my Bloomberg Data is corrupted, but...
The headline should have said:
"Greek 3 Year Bonds Yielding 11.3%, As German Party Member Says Greece Needs Further Austerity Or We Will Invade With 20 Tank Divisions"
"Hitler later conferred that a Blitzkrieg is the only thing the Greeks understand..." Developing
Considering Bundeswehr combat readiness, training, discipline, and motivation - that's no longer an option. And an examination of the BRD TO&E, it will be very difficult to come up with enough people, equipment and material for 20 Panzer Divisions.
Um, what party member and from what party? We have six viable parties here ranging in various degrees from right to left. That may make a difference. Is there a link to the Handelsblatt article?
http://www.handelsblatt.com/politik/deutschland/schuldendebakel-fdp-legt...
Thanks Kaiten
Why is it "Goodbye euro"?
I tend to think that this is a basic evaluation of whether "Bigger is better" or "Higher Quality is better". Essence is more important than grand posture, and personally I would have greater confidence in a currency backed by fewer economically strong and financially prudent countries (and a nice mark-to-market gold reserve), than more countries that are a mishmash across the entire spectre.
I share your point of view. I believe what we are seeing is the development of a 2-tier Euro zone that would eventually evolve into 2 separate currencies. Germany and like minded EU nations will continue to share their currency. France, Italy, Greece, Portugal, Spain will end up on the outside, looking in.
Going forward, expect to see Germany et al achieving a greater voice in EU matters.