Greece Default Risk Jumps to 98%

[marmar]

(Bloomberg) Greece’s chance of default in the next five years has soared to 98 percent as Prime Minister George Papandreou fails to reassure international investors that his country can survive the euro-region crisis.

“Everyone’s pricing in a pretty near-term default and I think it’ll be a hard event,” said Peter Tchir, founder of hedge fund TF Market Advisors in New York. “Clearly this austerity plan is not working.”

It now costs a record $5.8 million upfront and $100,000 annually to insure $10 million of Greek debt for five years using credit-default swaps, up from $5.5 million in advance Sept. 9, according to CMA.

Papandreou’s promises to adhere to deficit targets that are conditions of the European Union and International Monetary Fund’s bailout were undermined by data showing Greece’s budget gap widened 22 percent in the first eight months of the year. The nation’s two-year note yield climbed toward 70 percent, while its stock market has plummeted by a third in the past seven weeks. ......(more)

The complete piece is at: http://www.bloomberg.com/news/2011-09-12/greece-s-risk-of-default-increases-to-98-as-european-debt-crisis-deepens.html

[okieinpain]

1. man someone is having a hard time with math over there.

those decimal points are tricky little bastards.

[dipsydoodle]

2. They should default NOW

and go over to a situation whereby they can spend what they've got i.e by creating a recognisable tax collection system.

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Fear that Greece will default on its debt, perhaps triggering a financial chain reaction that will cause another global recession, hurt European stocks Monday and sent American stocks lower for a time.

The market tension came after a German politician suggested Greek finances are so bad the nation might have to leave the coalition of 17 countries that use the euro as their common currency.

In addition, the German economy minister published an op-ed arguing that an "orderly bankruptcy" of Greece must be an option. Greece has been relying on international bailouts to keep it solvent.

http://abcnews.go.com/International/wireStory?id=14503517

and say :hi: to Drachmas again Greece.

[lpbk2713]

3. They could sell the Acropolis to Donald Trump

He'd tear down the Parthenon and put luxury condos in its place.


... and of course he'd call it urban renewal. :eyes: