Greek, Irish, and Portuguese yields are at or flirting with new all-time highs. Moreover, things are not looking pretty for Spanish and Italian bonds. Both trade at the upper end of their respective ranges yet German bond yields have fallen since the second week in April. The prospect of a messy default in Greece is [...]
ECB president Jean-Claude Trichet is without a doubt having another hissy-fit today as Germany Seeks Extending Greek Maturities German Finance Minister Wolfgang Schaeuble said bondholders must contribute a “substantial” share of a second aid package for Greece, proposing a swap that credit-rating companies may term a default. Schaeuble told European Central Bank President Jean-Claude Trichet [...]
European banks have $188 Billion at risk from Greece, Ireland, Portugal, and Spain. Excluding default risk, those banks are still woefully short of capital according to a study coming out tomorrow. Please consider European Banks’ Capital Shortfall Means Greece Debt Default Not an Option The “fragilities” of Europe’s banking industry mean a Greek default isn’t [...]
My friend Bran who lives in Spain passed along this bit of news regarding Spain. After the power change in the Castilla-la Mancha community, the new People's Party governorship effectively declares it bankrupt, with 2 billion EU unpaid service bills and 7 billion EU in debt. 70,000 state workers are only guaranteed one month's wage [...]