We missed it yesterday, as we got transfixed on post-downgrade America, but that Greek yield surge early in the morning just kept going, and going, and going. 10-year yields are now over 14.6%, with further widening this morning.
Meanwhile, Greece’s big newspaper Kathemirni is out with a call for the Greek’s to play hardball.
It’s not clear whom, exactly, Greece needs to be playing hardball with. The rapidly deteriorating confidence of the bond market won’t respond well to threats of default.
After walking through the situation of the spiraling yields and disappointing austerity measures, it goes
This means Greece may have to play hardball and be prepared for everything. Of course, it is hoped that its partners will understand that it is in everybody’s interest for the country to get out of the debt trap. However, this will not happen unless Greek people are offered a clear choice where there is light at the end of the tunnel.
Asking the Greeks to endure years of economic suffering and then a debt restructuring to enter the ESM for funding is not a welcome choice. In this regard, I think that those who suggest that the government or any negotiator will have to play every card, including the threat of a default if it comes down to that, are right.