The Greek bond holiday is here. Greece’s bond pricing administration HDAT has withdrawn bond prices as spreads have hit 650 bps. Greece acknowledges it is game over as 10 Years are at 10%, and 3 Years at 13%. Stock liquidation are rampant as Greeks are on the verge of panic: the ASE is down 3% and investors are now widely expecting a 10% correction to below 1,700 on the ASE.
Translation: No one expects the current EU-IMF bailout of Greece to be effective or even long-lasting, assuming Germany even agrees to helping fund it. Greece could easily default on debt regardless of what happens. Some are saying Greece should leave the EU, float its own currency, then continue their fall off a cliff.
Portugal is next. Nobody really knows what will happen except that answers are needed very quickly now.