Yields on Greek two-year notes rose above 60 percent today for the first time. Credit-default swaps to insure the country’s five-year bonds and to speculate on government securities are at an all-time high of over 3,500 basis points, according to CMA. The contracts are the highest in the world and more than three times the 1,134 basis points for Portuguese debt.
Germany, the big force in the EU, appears close to cutting off EU aid to Greece, which would mean Greek bankruptcy. If Greece goes, Portugal may not be far behind. And around the corner would be Italy.
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