Greece Runs Out of Other People's Money

[SAYIT]

fyi.....only Greek Prime Minister

The guy is a bald-face liar. No one is impeding Greece's right to hold a referendum. Greece could have held it a week (or a month) ago and the EU decision not to extend the June 30 deadline - of which Tsipras's gov't has long been aware - is a clear message that his duplicity is known and rejected. He played out his mendacious cards with the creditors and Greece's EZ partners and is reduced now to trying the same with his Greek constituents.
Watch for Tsipras to suddenly "find" a few billion with which to satisfy the IMF and buy a few days of breathing space from the EZ.

 

[eagle1462010]

fyi.....only Greek Prime Minister

The guy is a bald-face liar. No one is impeding Greece's right to hold a referendum. Greece could have held it a week (or a month) ago and the EU decision not to extend the June 30 deadline - of which Tsipras's gov't has long been aware - is a clear message that his duplicity is known and rejected. He played out his mendacious cards with the creditors and Greece's EZ partners and is reduced now to trying the same with his Greek constituents.
Watch for Tsipras to suddenly "find" a few billion with which to satisfy the IMF and buy a few days of breathing space from the EZ.

I didn't endorse..............fyi post only

 

[montelatici]

fyi.....only Greek Prime Minister

The guy is a bald-face liar. No one is impeding Greece's right to hold a referendum. Greece could have held it a week (or a month) ago and the EU decision not to extend the June 30 deadline - of which Tsipras's gov't has long been aware - is a clear message that his duplicity is known and rejected. He played out his mendacious cards with the creditors and Greece's EZ partners and is reduced now to trying the same with his Greek constituents.
Watch for Tsipras to suddenly "find" a few billion with which to satisfy the IMF and buy a few days of breathing space from the EZ.

How is it that you are on the wrong side of every issue?

Lenders gave credit to Greece because Greek bonds yielded tremendous rates of interest. 11% just recently. Did the lenders believe that this rate of interest (I think Germany's bonds are negative at the moment), they would have the same risk as bonds from other EU states?

The lenders expect that the Greek people to borrow more at even greater rates of interest to pay off lenders getting an 11% rate of return. The Greeks are right to balk at taking on more debt to pay off debt. Austerity got them nothing, so why not default.

 

[SAYIT]

fyi.....only Greek Prime Minister

The guy is a bald-face liar. No one is impeding Greece's right to hold a referendum. Greece could have held it a week (or a month) ago and the EU decision not to extend the June 30 deadline - of which Tsipras's gov't has long been aware - is a clear message that his duplicity is known and rejected. He played out his mendacious cards with the creditors and Greece's EZ partners and is reduced now to trying the same with his Greek constituents.
Watch for Tsipras to suddenly "find" a few billion with which to satisfy the IMF and buy a few days of breathing space from the EZ.

How is it that you are on the wrong side of every issue?

Lenders gave credit to Greece because Greek bonds yielded tremendous rates of interest. 11% just recently. Did the lenders believe that this rate of interest (I think Germany's bonds are negative at the moment), they would have the same risk as bonds from other EU states?

The lenders expect that the Greek people to borrow more at even greater rates of interest to pay off lenders getting an 11% rate of return. The Greeks are right to balk at taking on more debt to pay off debt. Austerity got them nothing, so why not default.

Yanno, you're an idiot on any subject. The IMF does not buy Greek bonds. They are the lender-of-last-resort and having exhausted all other options, Greece borrowed from the IMF because it was the only source of foreign capital left to them. Greece is now offering 30% on their gov't bonds and no one is buying.
WTF does that tell you?
BTW, interest on Greek debt - thanks to the less than 1/2% rate charged by Eurozone creditors, is well below that of other EZ countries:
Portugal 5%, Italy 4.75%, Ireland 4.2%, Spain 3.3%, Greece 2.6%, France 2.25%

 

[montelatici]

fyi.....only Greek Prime Minister

The guy is a bald-face liar. No one is impeding Greece's right to hold a referendum. Greece could have held it a week (or a month) ago and the EU decision not to extend the June 30 deadline - of which Tsipras's gov't has long been aware - is a clear message that his duplicity is known and rejected. He played out his mendacious cards with the creditors and Greece's EZ partners and is reduced now to trying the same with his Greek constituents.
Watch for Tsipras to suddenly "find" a few billion with which to satisfy the IMF and buy a few days of breathing space from the EZ.

How is it that you are on the wrong side of every issue?

Lenders gave credit to Greece because Greek bonds yielded tremendous rates of interest. 11% just recently. Did the lenders believe that this rate of interest (I think Germany's bonds are negative at the moment), they would have the same risk as bonds from other EU states?

The lenders expect that the Greek people to borrow more at even greater rates of interest to pay off lenders getting an 11% rate of return. The Greeks are right to balk at taking on more debt to pay off debt. Austerity got them nothing, so why not default.

Yanno, you're an idiot on any subject. The IMF does not buy Greek bonds. They are the lender-of-last-resort and having exhausted all other options, Greece borrowed from the IMF because it was the only source of foreign capital left to them. Greece is now offering 30% on their gov't bonds and no one is buying.
WTF does that tell you?
BTW, interest on Greek debt - thanks to the less than 1/2% rate charged by Eurozone creditors, is well below that of other EZ countries:
Portugal 5%, Italy 4.75%, Ireland 4.2%, Spain 3.3%, Greece 2.6%, France 2.25%

Right. you clown. As they say, better to remain silent and be thought a fool than to speak and remove all doubt.



"Bondholders who have stayed invested in Greek bonds through the election of the new party and its subsequent talks with its creditors, are enjoying massive returns. Meanwhile, Germany has issued its first negative yield bond, a new report has revealed. Germany is a member country of the Eurogroup that has lent billions of dollars in aid to Greece.......The bond yield had risen to over 11 percent by end of January and early February...... While investors in Greek bonds continue to enjoy high rates of return on their investment, Germany may be fighting a potential deflationary situation in its economy. According to a report by CNN, the country has issued bonds that carry a negative yield of 0.08 percent.


Greek Bonds Yielding Massive Returns While Germany Issues Its First Negative Yield Bond

 

[Toddsterpatriot]

fyi.....only Greek Prime Minister

The guy is a bald-face liar. No one is impeding Greece's right to hold a referendum. Greece could have held it a week (or a month) ago and the EU decision not to extend the June 30 deadline - of which Tsipras's gov't has long been aware - is a clear message that his duplicity is known and rejected. He played out his mendacious cards with the creditors and Greece's EZ partners and is reduced now to trying the same with his Greek constituents.
Watch for Tsipras to suddenly "find" a few billion with which to satisfy the IMF and buy a few days of breathing space from the EZ.

How is it that you are on the wrong side of every issue?

Lenders gave credit to Greece because Greek bonds yielded tremendous rates of interest. 11% just recently. Did the lenders believe that this rate of interest (I think Germany's bonds are negative at the moment), they would have the same risk as bonds from other EU states?

The lenders expect that the Greek people to borrow more at even greater rates of interest to pay off lenders getting an 11% rate of return. The Greeks are right to balk at taking on more debt to pay off debt. Austerity got them nothing, so why not default.

Yanno, you're an idiot on any subject. The IMF does not buy Greek bonds. They are the lender-of-last-resort and having exhausted all other options, Greece borrowed from the IMF because it was the only source of foreign capital left to them. Greece is now offering 30% on their gov't bonds and no one is buying.
WTF does that tell you?
BTW, interest on Greek debt - thanks to the less than 1/2% rate charged by Eurozone creditors, is well below that of other EZ countries:
Portugal 5%, Italy 4.75%, Ireland 4.2%, Spain 3.3%, Greece 2.6%, France 2.25%

Right. you clown. As they say, better to remain silent and be thought a fool than to speak and remove all doubt.



"Bondholders who have stayed invested in Greek bonds through the election of the new party and its subsequent talks with its creditors, are enjoying massive returns. Meanwhile, Germany has issued its first negative yield bond, a new report has revealed. Germany is a member country of the Eurogroup that has lent billions of dollars in aid to Greece.......The bond yield had risen to over 11 percent by end of January and early February...... While investors in Greek bonds continue to enjoy high rates of return on their investment, Germany may be fighting a potential deflationary situation in its economy. According to a report by CNN, the country has issued bonds that carry a negative yield of 0.08 percent.


Greek Bonds Yielding Massive Returns While Germany Issues Its First Negative Yield Bond

Bondholders who have stayed invested in Greek bonds through the election of the new party and its subsequent talks with its creditors, are enjoying massive returns.

Yeah, massive returns, right up to the moment they default. LOL!

 

[montelatici]

fyi.....only Greek Prime Minister

The guy is a bald-face liar. No one is impeding Greece's right to hold a referendum. Greece could have held it a week (or a month) ago and the EU decision not to extend the June 30 deadline - of which Tsipras's gov't has long been aware - is a clear message that his duplicity is known and rejected. He played out his mendacious cards with the creditors and Greece's EZ partners and is reduced now to trying the same with his Greek constituents.
Watch for Tsipras to suddenly "find" a few billion with which to satisfy the IMF and buy a few days of breathing space from the EZ.

How is it that you are on the wrong side of every issue?

Lenders gave credit to Greece because Greek bonds yielded tremendous rates of interest. 11% just recently. Did the lenders believe that this rate of interest (I think Germany's bonds are negative at the moment), they would have the same risk as bonds from other EU states?

The lenders expect that the Greek people to borrow more at even greater rates of interest to pay off lenders getting an 11% rate of return. The Greeks are right to balk at taking on more debt to pay off debt. Austerity got them nothing, so why not default.

Yanno, you're an idiot on any subject. The IMF does not buy Greek bonds. They are the lender-of-last-resort and having exhausted all other options, Greece borrowed from the IMF because it was the only source of foreign capital left to them. Greece is now offering 30% on their gov't bonds and no one is buying.
WTF does that tell you?
BTW, interest on Greek debt - thanks to the less than 1/2% rate charged by Eurozone creditors, is well below that of other EZ countries:
Portugal 5%, Italy 4.75%, Ireland 4.2%, Spain 3.3%, Greece 2.6%, France 2.25%

Right. you clown. As they say, better to remain silent and be thought a fool than to speak and remove all doubt.



"Bondholders who have stayed invested in Greek bonds through the election of the new party and its subsequent talks with its creditors, are enjoying massive returns. Meanwhile, Germany has issued its first negative yield bond, a new report has revealed. Germany is a member country of the Eurogroup that has lent billions of dollars in aid to Greece.......The bond yield had risen to over 11 percent by end of January and early February...... While investors in Greek bonds continue to enjoy high rates of return on their investment, Germany may be fighting a potential deflationary situation in its economy. According to a report by CNN, the country has issued bonds that carry a negative yield of 0.08 percent.


Greek Bonds Yielding Massive Returns While Germany Issues Its First Negative Yield Bond

Bondholders who have stayed invested in Greek bonds through the election of the new party and its subsequent talks with its creditors, are enjoying massive returns.

Yeah, massive returns, right up to the moment they default. LOL!

That's exactly my point. Please explain that to Sayit.

 

[SAYIT]

fyi.....only Greek Prime Minister

The guy is a bald-face liar. No one is impeding Greece's right to hold a referendum. Greece could have held it a week (or a month) ago and the EU decision not to extend the June 30 deadline - of which Tsipras's gov't has long been aware - is a clear message that his duplicity is known and rejected. He played out his mendacious cards with the creditors and Greece's EZ partners and is reduced now to trying the same with his Greek constituents.
Watch for Tsipras to suddenly "find" a few billion with which to satisfy the IMF and buy a few days of breathing space from the EZ.

How is it that you are on the wrong side of every issue?

Lenders gave credit to Greece because Greek bonds yielded tremendous rates of interest. 11% just recently. Did the lenders believe that this rate of interest (I think Germany's bonds are negative at the moment), they would have the same risk as bonds from other EU states?

The lenders expect that the Greek people to borrow more at even greater rates of interest to pay off lenders getting an 11% rate of return. The Greeks are right to balk at taking on more debt to pay off debt. Austerity got them nothing, so why not default.

Yanno, you're an idiot on any subject. The IMF does not buy Greek bonds. They are the lender-of-last-resort and having exhausted all other options, Greece borrowed from the IMF because it was the only source of foreign capital left to them. Greece is now offering 30% on their gov't bonds and no one is buying.
WTF does that tell you?
BTW, interest on Greek debt - thanks to the less than 1/2% rate charged by Eurozone creditors, is well below that of other EZ countries:
Portugal 5%, Italy 4.75%, Ireland 4.2%, Spain 3.3%, Greece 2.6%, France 2.25%

Right. you clown. As they say, better to remain silent and be thought a fool than to speak and remove all doubt.



"Bondholders who have stayed invested in Greek bonds through the election of the new party and its subsequent talks with its creditors, are enjoying massive returns. Meanwhile, Germany has issued its first negative yield bond, a new report has revealed. Germany is a member country of the Eurogroup that has lent billions of dollars in aid to Greece.......The bond yield had risen to over 11 percent by end of January and early February...... While investors in Greek bonds continue to enjoy high rates of return on their investment, Germany may be fighting a potential deflationary situation in its economy. According to a report by CNN, the country has issued bonds that carry a negative yield of 0.08 percent.


Greek Bonds Yielding Massive Returns While Germany Issues Its First Negative Yield Bond

So you're not pretending but rather are every bit as stupid as your posts indicate. No one is buying Greek bonds and those "massive returns will only materialize if bond holders - who in recent years have taken major haircuts on principal - can collect on money they lent to Greece. The interest spread between Greek and German (or American) gov't issues is the risk involved. Here is the most recent yield info available on Greek 3 year bonds from the Greek Central Bank:
June 15 - 27.06%
June 16 - 28.64%
June 17 - 28.68%
June 18 - 29.59%
June 19 - 29.33%
June 22 - 28.17%
June 23 - 23.31%
June 24 - 21.63%
June 25 - 22.25%

Government Benchmark Bonds

 

[SAYIT]

The guy is a bald-face liar. No one is impeding Greece's right to hold a referendum. Greece could have held it a week (or a month) ago and the EU decision not to extend the June 30 deadline - of which Tsipras's gov't has long been aware - is a clear message that his duplicity is known and rejected. He played out his mendacious cards with the creditors and Greece's EZ partners and is reduced now to trying the same with his Greek constituents.
Watch for Tsipras to suddenly "find" a few billion with which to satisfy the IMF and buy a few days of breathing space from the EZ.

How is it that you are on the wrong side of every issue?

Lenders gave credit to Greece because Greek bonds yielded tremendous rates of interest. 11% just recently. Did the lenders believe that this rate of interest (I think Germany's bonds are negative at the moment), they would have the same risk as bonds from other EU states?

The lenders expect that the Greek people to borrow more at even greater rates of interest to pay off lenders getting an 11% rate of return. The Greeks are right to balk at taking on more debt to pay off debt. Austerity got them nothing, so why not default.

Yanno, you're an idiot on any subject. The IMF does not buy Greek bonds. They are the lender-of-last-resort and having exhausted all other options, Greece borrowed from the IMF because it was the only source of foreign capital left to them. Greece is now offering 30% on their gov't bonds and no one is buying.
WTF does that tell you?
BTW, interest on Greek debt - thanks to the less than 1/2% rate charged by Eurozone creditors, is well below that of other EZ countries:
Portugal 5%, Italy 4.75%, Ireland 4.2%, Spain 3.3%, Greece 2.6%, France 2.25%

Right. you clown. As they say, better to remain silent and be thought a fool than to speak and remove all doubt.



"Bondholders who have stayed invested in Greek bonds through the election of the new party and its subsequent talks with its creditors, are enjoying massive returns. Meanwhile, Germany has issued its first negative yield bond, a new report has revealed. Germany is a member country of the Eurogroup that has lent billions of dollars in aid to Greece.......The bond yield had risen to over 11 percent by end of January and early February...... While investors in Greek bonds continue to enjoy high rates of return on their investment, Germany may be fighting a potential deflationary situation in its economy. According to a report by CNN, the country has issued bonds that carry a negative yield of 0.08 percent.


Greek Bonds Yielding Massive Returns While Germany Issues Its First Negative Yield Bond

Bondholders who have stayed invested in Greek bonds through the election of the new party and its subsequent talks with its creditors, are enjoying massive returns.

Yeah, massive returns, right up to the moment they default. LOL!

That's exactly my point. Please explain that to Sayit.

You aren't even bright enough to recognize TP's sarcasm. There are no "massive returns" when Greece fails to pay (which they surely will), you idiot. Wake the fuck up!

 

[montelatici]

How is it that you are on the wrong side of every issue?

Lenders gave credit to Greece because Greek bonds yielded tremendous rates of interest. 11% just recently. Did the lenders believe that this rate of interest (I think Germany's bonds are negative at the moment), they would have the same risk as bonds from other EU states?

The lenders expect that the Greek people to borrow more at even greater rates of interest to pay off lenders getting an 11% rate of return. The Greeks are right to balk at taking on more debt to pay off debt. Austerity got them nothing, so why not default.

Yanno, you're an idiot on any subject. The IMF does not buy Greek bonds. They are the lender-of-last-resort and having exhausted all other options, Greece borrowed from the IMF because it was the only source of foreign capital left to them. Greece is now offering 30% on their gov't bonds and no one is buying.
WTF does that tell you?
BTW, interest on Greek debt - thanks to the less than 1/2% rate charged by Eurozone creditors, is well below that of other EZ countries:
Portugal 5%, Italy 4.75%, Ireland 4.2%, Spain 3.3%, Greece 2.6%, France 2.25%

Right. you clown. As they say, better to remain silent and be thought a fool than to speak and remove all doubt.



"Bondholders who have stayed invested in Greek bonds through the election of the new party and its subsequent talks with its creditors, are enjoying massive returns. Meanwhile, Germany has issued its first negative yield bond, a new report has revealed. Germany is a member country of the Eurogroup that has lent billions of dollars in aid to Greece.......The bond yield had risen to over 11 percent by end of January and early February...... While investors in Greek bonds continue to enjoy high rates of return on their investment, Germany may be fighting a potential deflationary situation in its economy. According to a report by CNN, the country has issued bonds that carry a negative yield of 0.08 percent.


Greek Bonds Yielding Massive Returns While Germany Issues Its First Negative Yield Bond

Bondholders who have stayed invested in Greek bonds through the election of the new party and its subsequent talks with its creditors, are enjoying massive returns.

Yeah, massive returns, right up to the moment they default. LOL!

That's exactly my point. Please explain that to Sayit.

You aren't even bright enough to recognize TP's sarcasm. There are no "massive returns" if Greece fails to pay (which they surely will), you idiot. Wake the fuck up!

You keep making my point. Of course there are no massive returns if Greece doesn't pay. You really don't get it, do you.

 

[SAYIT]

Yanno, you're an idiot on any subject. The IMF does not buy Greek bonds. They are the lender-of-last-resort and having exhausted all other options, Greece borrowed from the IMF because it was the only source of foreign capital left to them. Greece is now offering 30% on their gov't bonds and no one is buying.
WTF does that tell you?
BTW, interest on Greek debt - thanks to the less than 1/2% rate charged by Eurozone creditors, is well below that of other EZ countries:
Portugal 5%, Italy 4.75%, Ireland 4.2%, Spain 3.3%, Greece 2.6%, France 2.25%

Right. you clown. As they say, better to remain silent and be thought a fool than to speak and remove all doubt.



"Bondholders who have stayed invested in Greek bonds through the election of the new party and its subsequent talks with its creditors, are enjoying massive returns. Meanwhile, Germany has issued its first negative yield bond, a new report has revealed. Germany is a member country of the Eurogroup that has lent billions of dollars in aid to Greece.......The bond yield had risen to over 11 percent by end of January and early February...... While investors in Greek bonds continue to enjoy high rates of return on their investment, Germany may be fighting a potential deflationary situation in its economy. According to a report by CNN, the country has issued bonds that carry a negative yield of 0.08 percent.


Greek Bonds Yielding Massive Returns While Germany Issues Its First Negative Yield Bond

Bondholders who have stayed invested in Greek bonds through the election of the new party and its subsequent talks with its creditors, are enjoying massive returns.

Yeah, massive returns, right up to the moment they default. LOL!

That's exactly my point. Please explain that to Sayit.

You aren't even bright enough to recognize TP's sarcasm. There are no "massive returns" if Greece fails to pay (which they surely will), you idiot. Wake the fuck up!

You keep making my point. Of course there are no massive returns if Greece doesn't pay. You really don't get it, do you.

I don't get it? I've proven that Greek bonds aren't worth the paper they are printed on and the going rate for bonds (near 30%) no rational investor will buy.

 

[Toddsterpatriot]

Yanno, you're an idiot on any subject. The IMF does not buy Greek bonds. They are the lender-of-last-resort and having exhausted all other options, Greece borrowed from the IMF because it was the only source of foreign capital left to them. Greece is now offering 30% on their gov't bonds and no one is buying.
WTF does that tell you?
BTW, interest on Greek debt - thanks to the less than 1/2% rate charged by Eurozone creditors, is well below that of other EZ countries:
Portugal 5%, Italy 4.75%, Ireland 4.2%, Spain 3.3%, Greece 2.6%, France 2.25%

Right. you clown. As they say, better to remain silent and be thought a fool than to speak and remove all doubt.



"Bondholders who have stayed invested in Greek bonds through the election of the new party and its subsequent talks with its creditors, are enjoying massive returns. Meanwhile, Germany has issued its first negative yield bond, a new report has revealed. Germany is a member country of the Eurogroup that has lent billions of dollars in aid to Greece.......The bond yield had risen to over 11 percent by end of January and early February...... While investors in Greek bonds continue to enjoy high rates of return on their investment, Germany may be fighting a potential deflationary situation in its economy. According to a report by CNN, the country has issued bonds that carry a negative yield of 0.08 percent.


Greek Bonds Yielding Massive Returns While Germany Issues Its First Negative Yield Bond

Bondholders who have stayed invested in Greek bonds through the election of the new party and its subsequent talks with its creditors, are enjoying massive returns.

Yeah, massive returns, right up to the moment they default. LOL!

That's exactly my point. Please explain that to Sayit.

You aren't even bright enough to recognize TP's sarcasm. There are no "massive returns" if Greece fails to pay (which they surely will), you idiot. Wake the fuck up!

You keep making my point. Of course there are no massive returns if Greece doesn't pay. You really don't get it, do you.

"Bondholders who have stayed invested in Greek bonds through the election of the new party and its subsequent talks with its creditors, are enjoying massive returns"

You posted the above, because you disagreed with it?

 

[Synthaholic]

And the Grexit I predicted back in January comes one step closer. What did those assholes think? They could stick their thumbs in Europeans' eyes and say fuck you but still continue to get bailout money? I dont think so.
Greece and creditors fail in last attempt to reach deal - Yahoo Finance

grease like the United States is going broke because the rich are not paying their fair share of taxes

I found this hilarious cartoon detailing this issue..

You could take everything the Top 1% has and it still wouldn't pay off our debt ... Keep on pretending you have any answers worth listening to.

.

It would eventually. But that's a strawman. Make the corporations and the 1% pay what they are supposed to be paying, by eliminating all loopholes and exemptions which are only in the tax code because of the corporations and the 1%, and their influence in Congress.

 

[montelatici]

You really don't get it, do you. As long as the Greeks played the game and embraced austerity, money was forthcoming from the ECB and others to make sure the investors, who bought Greek bonds because of the high yields, received the high yields that they have been receiving. When you invest in a bond that pays 10% instead of zero or less, it is called speculating. The speculators believed that the Greeks would accept continued austerity and that additional loans, to pay the high yields would be forthcoming. The investor that invested in German (or other European bonds) at close to zero did not. The Greeks voted in a different party because they did not want continued austerity. The investors in Greek bonds took a risk for higher (much higher) yields. Do you get it, or are you the moron you appear to be?

 

[SAYIT]

You really don't get it, do you. As long as the Greeks played the game and embraced austerity, money was forthcoming from the ECB and others to make sure the investors, who bought Greek bonds because of the high yields, received the high yields that they have been receiving...

You just don't get it. Long before there was austerity, Greece's EZ partners - once they decided to let Greece join the club - did everything they could to help jump-start and grow the Greek economy but successive Greek gov'ts simply used the largesse to continue their socialist-style party. They have borrowed over $25,000 per Greek the past few years to pay for that party. Given the "vitality" of their economy that's roughly equal to the US borrowing $250,000 per citizen. It's unsustainable.

 

[montelatici]

Again, you make my point. Investors/speculators believed that notwithstanding the higher yields, the risk was negligible for their particular bond. As recently as April 2014 this is what the pundits were saying (see below). My point is, tough luck for the speculators if it all goes bottoms up. But, I am not yet convinced that the powers that be will allow the wealthy speculators will be left out to dry. Although I hope they are.

"2. The yield is reasonably juicy.

4.95% might not seem like a lot on its face, but Greece has been suffering from deflation for the past year. Right now the inflation rate in Greece is about -1.5%, which means the real yield on this bond, for a Greek investor, is actually closer to 6.5%. Given that Europe is going to have a zero interest rate environment for the foreseeable future, that kind of real yield is undeniably attractive.

3. There’s potential for significant price appreciation.

With a coupon of 4.75% and a yield of 4.95%, you can buy €1,000 face value of bonds today for €991. Let’s assume that you hold this bond for 18 months, and that at the end of that period the yield has dropped to Portugal’s 2.6%. In that case, you would get three coupons along the way, totaling €71.25, even as the value of the bond itself would have risen to $1,071. If you sell the bond at that point, you’re not just getting your €71.25 in coupon payments, and you’re also getting €80 in capital gains — for a total profit of €151.25. Which is a 15.3% return in 18 months. Not too shabby, in a world of zero interest rates.

4. The chance of default is slim.

Greece has an unsustainable debt load, and will certainly default again in the future. But the key question for anybody buying this bond isn’t whether Greece will default. Rather it’s whenGreece will default, and what instruments Greece will choose to default on. So long as Greece continues to pay the modest coupons on this modestly-sized bond for the next five years, it can prove to be a perfectly good investment even if the country is defaulting elsewhere. Similarly, if Greece defaults on its public bonded debt but does so after April 2019, again this bond will be unscathed.

The degree of pain inflicted on Greece’s private-sector bondholders in 2012 was so enormous, and the amount of privately-held debt which is still outstanding is so small, that it’s going to be the official sector’s turn to take a big haircut next time round. In other words, buying this bond does not constitute a bet that Greece, as a sovereign, will not default. It’s just a bet that this particular bond will not default. And that’s actually a bet I’d be willing to take."

Five explanations for Greece s bond yield

 

[francoHFW]

Greece is corrupt. The rich don't pay their taxes. Legacy from Nixon supported dictatorship...

 

[Toddsterpatriot]

Greece is corrupt. The rich don't pay their taxes. Legacy from Nixon supported dictatorship...

Greece is corrupt. Their government spends 60% of GDP.

 

[SAYIT]

I didn't see you post a fact.

What's wrong, you haven't paid attention since 2008?

I have and I haven't seen you post anything that didn't come from the crack between your butt-cheeks. What you, like Greece's current gov't, produce is just lie upon fabrication but then loony lefties never seem to have either integrity or a sense of shame.

"Corporate America is sitting on $100 Trillion in cash." - 1%er
"I made $36.5M last year and paid NO income tax," - 1%er

 

[SAYIT]

Greece is corrupt. The rich don't pay their taxes. Legacy from Nixon supported dictatorship...

Greece is corrupt. Their government spends 60% of GDP.

Yanno, I shake my head at the lies 1%er posts here but then shake my whole body at the bald-face lies that roll so easily off the tongues of Greece's top gov't officials. In closely watching the current Greek tragedy I am amazed by the creditor's patience and sincerity, saddened by the ineptitude and duplicity of the Greeks and shocked by the Goebbels-like "Big Lie" rhetoric they employ. Has Europe learned nothing from their "glorious" 20th Century?