Greek media reported that the Greek government would formally ask for a bailout from the IMF and Europe. Greek 10-year bonds rallied, with its yield dropping below 8%.
Then Greece’s prime minster George Papandreou started talking.
“The moment has come,” Papandreou said, speaking from the remote Aegean island of Kastelorizo.
“We inherited a ship that was ready to sink. A country bereft of prestige and credibility, which had even lost the respect of its friends and partners,” said Papandreou, who came to power in October elections.
However, he said, “markets did not respond. Either because they did not believe in the will of the EU or because some decided to continue speculating. And today, the situation in the markets threatens to deconstruct, not only the sacrifices of the Greek people, but also the smooth course of the economy itself.”
Now Greek bonds are routing again, with the yield back to 8.19%. Ouch, Mr. Papandreou’s words don’t come cheap.
(Chart via Bloomberg)
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