Greece default ahead

Posted on September 9, 2011 by

From Business Insider:

Europe appears to be within days of some kind of breaking point. There have obviously been huge concerns about the next Greek bailout and whether it would happen (and with 2-year yields at 55% on Greek debt, it’s obvious that the market has been skeptical for a while).

Pre-market there was chatter about a Greek default as soon as this weekend. Then at around 9:20, it came out that a top hawk was leaving the ECB, further emphasizing the lack of cohesion at this crucial institution. And then worries got even more heightened when, this afternoon, it was reported that Germany was planning a fund of sorts to bail out its own banks, in the event of a Greek default. While it’s good news that Germany is planning on ring-fencing its financial system, the news was taken as a further signal to the market that Greece is on the edge.

Germany’s citizens want to prevent the bailout.