Posted by dentist 007 on January 31, 2010 at 9:56am
from mac ostwald and john mauldinquoted textOn Monday, the government of Greece offered a "gift" to the markets of 8 billion euros worth of bonds at a rather high 6.25%. The demand was for 25 billion euros, so this offering was rather robust. Today, those same Greek bonds closed on 6.5%, more than offsetting the first year's coupon. Greek bond yields are up more than 150 basis points in the last month!Why such a one-week turnaround? Ambrose Evans Pritchard offers up this thought: "Marc Ostwald, from Monument Securities, said the botched bond issue of €8bn (£6.9bn) of Greek debt earlier this week has made matters worse. Many of the investors were 'hot money' funds that bought on rumors that China was emerging as a buyer, offering them a chance for quick profit. When the China story was denied by Beijing and Athens, these funds rushed for the exit."
conclusions from mauldin...in his weekly e letter.
if there are runs on greek banks to withdraw savings ..then there is real trouble.confidence breaks.then there is no chance
Comments
if there are runs on greek banks to withdraw savings ..then there is real trouble.confidence breaks.then there is no chance