Greek Bond Yields Explode as 1 year moves 100 bps to over 752% in One Day

[FlaGordon]

Here is an animated video on the Greek debt crisis, It's totally over.

They are going to bring down the Greek debt to GDP ratio down to 120.5%
That's the money the Greeks owe the banks compared to all the money the entire country make in a year.
So they are going to reduce their debt to a level greater then their entire economy.
It will take 8 years to do this and it will solve all their problems.
But it will only work if they change the Greek constitution to make paying debt a higher priority then providing basic public services....

So basically after a year and a half Europe has agreed that it will soon come to an agreement that might not work at all and the best case scenario is that it will take 8 years to reduce Greek debt to a level that is still too high.

http://www.guardian.co.uk/world/vide...nimation-video

[bw]

So basically after a year and a half Europe has agreed that it will soon come to an agreement that might not work at all and the best case scenario is that it will take 8 years to reduce Greek debt to a level that is still too high.

Eight years of Greeks paying foreign bankers instead of having working hospitals and public utilities. Wonder how that will play. After three months or so, wonder how attractive it will look to take Iceland's solution of telling foreigners to go hang.

[rondaben]

8 years? LOL! It won't be in effect in 14 days. There is no way that this happens.

[TomNTam]

rondaben, what will happen to the ones holding the bonds that are now next to worthless? I can't understand if these bonds are now haircut by 70%, how will we not see massive losses, to the extent that the robosigning was the US banks mainly, but this is banks across the world, so how is our govt. going to contain that? I must be looking at this wrong. It just isn't lining up.

[bw]

rondaben, what will happen to the ones holding the bonds that are now next to worthless? I can't understand if these bonds are now haircut by 70%, how will we not see massive losses, to the extent that the robosigning was the US banks mainly, but this is banks across the world, so how is our govt. going to contain that? I must be looking at this wrong. It just isn't lining up.

This is how collapse happens. It's messy and chaotic and full of collateral damage, and the slope is getting steeper every week.

[rondaben]

rondaben, what will happen to the ones holding the bonds that are now next to worthless? I can't understand if these bonds are now haircut by 70%, how will we not see massive losses, to the extent that the robosigning was the US banks mainly, but this is banks across the world, so how is our govt. going to contain that? I must be looking at this wrong. It just isn't lining up.

Looks like if they are banks they will be made whole. Otherwise, tough nuggets.

The entire second bailout is going to apparently be used as a european bailout fund. Banks holding those bonds will get first crack at the money which is being put into an escrot account. That account will be filled up by the greek people as they are expected to retroactively give up salaries and constitutionally guarantee that they will kick cash back to the banker bailout fund even over their own national needs. Next, the creditors have access and authority to sieze the gold in the greek central bank for payment.