Full story here from Ambrose Evans-Pritchard.
The relief rally fizzled shortly after Greece folded its bad poker hand and invoked aid. Bond risk as measured by Markit’s 5-year credit default swaps jumped to fresh records of 280 for Portugal and 177 for Spain. Irish CDS contracts rose 13 points to 185.
This was an entirely logical response [...]
More fun from MarketOracle. Of course, we have attention on So. Europe and not England which, despite not being on the Euro, is up around 60% debt-to-GDP. Mind you, Greece is only some 3% of total EU GDP, with a 16% debt-to-GDP. If this one country can break your system, it’s not much of a system.
“The euro [...]
Full story here from The Daily Telegraph. Ka-boom!
“Julian Callow from Barclays Capital said the EU may to need to invoke emergency treaty powers under Article 122 to halt the contagion, issuing an EU guarantee for Greek debt. “If not contained, this could result in a `Lehman-style’ tsunami spreading across much of the EU.”
Credit default swaps [...]
Full story here. The day these countries realize they have the power over the EU (and not the other way around) will be a breathe of life into the sick twins known as Peace and Prosperity.
Europe’s small, debt-strapped countries could follow the lead of Argentina and simply walk away from their debts. That would shift [...]