Watching the Euro Crisis

Mish notes that Greek 1 year bonds have hit 108% – meanwhile, over in Italy (from Bloomberg):

Italian bond yields surged at an auction today and Greek Prime Minister George Papandreou failed to reassure investors that his country can avert default as the euro region’s debt crisis worsened.

Italy sold 12-month bills today to yield 4.153 percent, up from 2.959 percent a month ago as demand fell…

I seem to remember Greek 1 year bonds being something like 4 or 5% a year ago…this is an economic model starting to unravel.  And it is kind of hard to keep a lid on it when you read stories from Europe of plans for an “orderly default” for Greece.

Could be a very wild, financial ride this week…

UPDATE:  Greek 1 year bonds reach 139%.

6 thoughts on “Watching the Euro Crisis

  1. Green Mountain Boy September 12, 2011 / 10:24 am

    Ya know, If I looked real hard I might be able to come with $2,500.00 to invest in the greek bond market. I don’t think that would happen though unless the Greeks would put up the Parthenon or the Acropolis in Athens as collateral. I don’t see that happening. 😛

    • Mark Edward Noonan September 12, 2011 / 10:45 am

      GMB,

      ROFL – that, though, is what is causing this to finally fall apart…the Eurozone leaders were all set to hand the Greek leaders another bag of money to bail them out, but then Finland chimed in demanding collateral…gotta love Finland. I think they are still they only nation which ever paid all its debts off to us…

      • Green Mountain Boy September 12, 2011 / 11:02 am

        As far as I know, you are right about finland. What kind of collateral did the Finns want? I was kind of hoping for my own Island. I wonder how much they would want for Crete? Maybe if we all pichted in?

      • Mark Edward Noonan September 12, 2011 / 12:32 pm

        GMB,

        I believe they wanted gold, or the equivalent…maybe that island?

      • neocon1 September 12, 2011 / 1:21 pm

        yet back home Ochimpy wants trillions more.
        The ruination of America before out very eyes by the kenyan – Manchurian POtuS

      • RetiredSpook September 12, 2011 / 1:44 pm

        yet back home Ochimpy wants trillions more.

        I was listening to Glenn Beck while working out at the Y this morning. He and Pat and Stu were playing a new game called “which stimulus?”. One of them read excerpts from Obama’s original stimulus speech from early 2009 and some from his jobs speech the other night. The game was to try to guess which statement came from which speech. I’m usually pretty good at such stuff, but the wording was so similar — in some cases almost word for word, that it was virtually impossible to tell. My first thought was that “this time it will be different” — right?

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