Greece\’s two-year government bond yield soared to nearly 15 percent on Tuesday,April 27, 2010 Tim WorstallFinance10 CommentsI\’ve seen 18% mentioned as well. Fork time. Default. previousGreek bonds downgradednextMoral obligation towards clients 10 thoughts on “Greece\’s two-year government bond yield soared to nearly 15 percent on Tuesday,” Kay Tie April 27, 2010 at 10:01 pm Oh dear. Bets already paying off on Greece. Place your bets on Portugal. Breaker April 27, 2010 at 11:51 pm Bbg has it at just over 13% on the 2 year. Ouch. Joe Litobarski April 28, 2010 at 12:07 am There’s no chance of Greece defaulting until May 19th (which is when the next payment is due). Why would it default before then? The elections in North Rhine/Westphalia in Germany are on May 9th, and Merkel will try not to commit anything before then because she’s worried about the results. Then you’ll probably see a rescue package pushed through very, very quickly. I’m willing to go on record and bet you that Greece won’t default. Joe Litobarski April 28, 2010 at 12:10 am Let me qualify that a bit – Greece won’t default this year. Next year or at some point in the next few years? Much more likely. dearieme April 28, 2010 at 12:25 am Should it default inside or outside EMU? Joe Litobarski April 28, 2010 at 10:08 am Dearieme – if you mean should it be ejected or leave the eurozone, I’ll make another bet. Greece will not leave the euro. First – because it’s impossible to force it out (the treaties don’t allow it). Second, because if Greece leaves the Eurozone voluntarily it also has to leave the EU. Nobody mentions this – but Greece leaving the Eurozone is not an option. Pingback: If Portugal Holds, Greece Will Too gene berman April 28, 2010 at 11:53 am dearieme: What’s that ostrich-like bird (EMU) got to do with it? diogenes April 29, 2010 at 12:22 pm http://www.taxresearch.org.uk/Blog/2010/03/05/lets-ignore-the-nonsense-the-reality-is-there-is-no-debt-crisis-even-in-greece/ blue monkey May 10, 2010 at 11:41 pm Greece and Spain won’t pay back. This was a calculated Risk, and a Lesson for the Banking System. The only thing Germans can do is: REPOSSESS 170 Leopard 2AEX Battle Tanks from Greece, and 190 Leopard 2A6E Battle Tanks from Spain. U.S.A must REPOSSESS 170 F-16 Jet Fighters from Greece, … the rest is gone with the wind …forever … Greece must stop paying lucrative pensions with borrowed money, reform the free health care system, and cut down, 4 times the military budged. Greece’s problem is too much debt. Greece has a budget deficit of 12.7% of GDP – meaning that the country is spending 12.7% more than the value of one year’s economic output. Greece is no different to a serial credit card borrower who can’t pay back his loans. But just like a serial credit card borrower, as long as Greece keeps relying on borrowed money to fund itself, the problem won’t go away. It will just get worse. http://www.defenseindustrydaily.com/Greece-in-Default-on-U-214-Submarine-Order-05801/ Don’t worry; the ECB, the Fed or both will print the money. And all of us will share the pain, with our hard-earned money. Bad is never good until worse happens. Leave a Reply Cancel replyYour email address will not be published. Required fields are marked *Comment Name * Email * Website Save my name, email, and website in this browser for the next time I comment.