Maybe the “successful” Greek Bond issue last week was successful only because it raised 5 billion euros. But the five year issue cost 350 basis points over the risk free mid swaps rate. This compares with 225 points ten months ago. And the question is; who purchased the bonds?
How many of the various government agencies across Europe provided a helping hand?
How many of the various government agencies across Europe provided a helping hand?
It is very unlikely the European Community would want to be seen bailing out any of its weaker members. However, it is even more unlikely that it would permit any member to go into default and the destabilization of the monetary union. We all remember what happened when a New York financial institution fell in 2008.
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