While you were paying attention to this week’s horse race between the US and Italy to see who could blow up the world economy quicker, Greece continued to deteriorate.
Yields on 2-year bonds just broke through 32% for the first time.
And the situation is bad. Yesterday came news that the IMF may be done supporting Greece without help in actually tearing up some of its debt. Only problem: Nobody knows how to do this without exacerbating contagion risks and placating the ratings agencies, who indicated that an earlier plan put forth by the French (which would have seen haircuts) would have probably constituted a default.