After all the effort covering up the EURO's debacle, one playing the tough German guy, sorry: lady, others playing the old time friends in need Greek bonds are hitting the 7% mark again. That's about 4% more than German bonds are paying.
That is not to say that German bonds are any more secure than the Greek ones; during the last three months app. eight billion EUROs were transferred from Greek saving accounts into British and Swiss bank accounts - and that is just what is known and traceable.
Once Greece will be giving in the artificial currency will be history; the implosion of all the fatal balance sheet constructions and bends won't survive the urgent desire of all so-called Club-Med countries to follow Greece into a then strong "Bond of the Weak". Mind you, France does have a substantial Mediterranean coastline.
So, every Sunday evening you go to bed with the same odd EURO in place will be one of the very last ones.
That is not to say that German bonds are any more secure than the Greek ones; during the last three months app. eight billion EUROs were transferred from Greek saving accounts into British and Swiss bank accounts - and that is just what is known and traceable.
Once Greece will be giving in the artificial currency will be history; the implosion of all the fatal balance sheet constructions and bends won't survive the urgent desire of all so-called Club-Med countries to follow Greece into a then strong "Bond of the Weak". Mind you, France does have a substantial Mediterranean coastline.
So, every Sunday evening you go to bed with the same odd EURO in place will be one of the very last ones.
Update 08-04-2010:
today the 10y bond cost Greece 7.4%; Spanish money is leaving Spain the rumours say.
Carpe diem!
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