Greece\’s two-year government bond yield soared to nearly 15 percent on Tuesday,

I\’ve seen 18% mentioned as well.

Fork time. Default.

10 thoughts on “Greece\’s two-year government bond yield soared to nearly 15 percent on Tuesday,”

  1. 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.

  2. 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.

  3. Pingback: If Portugal Holds, Greece Will Too

  4. 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.
    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.

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