Greek debt crisis goes nuclear

Greek bond yields rose from 7.8% to 10.38% in one day. There are virtually no sellers for insurance against a default either. This is highly unusual, and most definitely a bad moon rising for Greece.

Apparently the vampire squids of Goldman Sachs played a role in tarting up Greece’s books (I knew you’d be surprised), probably shorting Greek debt as they pretended to help them, or something equally odious and squiddy like that (Apologies to our fine tentacled friends in the squid kingdom for whom being compared to Goldman is deeply insulting.)

At a minimum, the actual deficit to GDP accrued by Athens in 2009 was 13.6 percent and might even be as high as 14.1 percent. Due to deliberate bookkeeping chicanery by previous Greek governments, apparently facilitated at least in some measure by the unique financial engineering of Goldman Sachs, the true state of Greek fiscal reality is hidden by a thick layer of artfully contrived opacity.

Germany is pushing hard for sanctions against EU countries that threaten stability and appears to view Greece as that neer-do-well second cousin they never knew who just stumbled in the door demanding money.

Whatever happens, it probably won’t be long in coming.

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