Greece looks critical!
A potential for Greece to default or be bailed out has been the topic of financial news for many weeks, yet today things have become dramatic. As ZeroHedge correctly points out, the Greek curve has gone ape feces and I am putting it kindly. Short term rates jumped to 21%! This essentially means that in order for Greece to continue "surviving" they will need to sell more treasuries and doing so with rates in the stratosphere will make this a very difficult task. Yet, the stock market is up and financial stocks are responding as if this is the best news in the world. What gives? My hunch is that the Greece fire is going to be snuffed out this weekend with an officially announced bailout. Perhaps IMF and the Eurozone were waiting for this thing to blow over or perhaps for Greece to jump ship on their own accord, but now their hand is forced. Even if we were to accept that the global markets have waved bye-bye to sanity a long time ago, a...