Comparable risk

The yield on Greece’s benchmark 10-year bonds soared 1.4 percentage points to 11.1 percent – more than three times that of benchmark German bonds and just below those issued by Pakistan.

There is more here.  The assessment seems to be this:

What a growing number of investors suggest is really needed is a “shock and awe” figure, enough to convince the markets that peripheral European economies will not be left to fail.

For better or worse, I do not expect such a figure is forthcoming.  I also do not see how such a figure would do more than postpone the basic problem, which is that several European economies have been pretending to be much wealthier than they really are and to make financial plans on that basis.


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