Monday, 19 April 2010

Greece on the brink

So, the IMF have arrived in Athens, and so has a giant volcanic ash cloud. Talks haven't started yet, either with the IMF or the ash cloud, but the Greeks' real problem is that tourism is the main earner and as Northern Europe is not flying at the moment that's going to kill the business. The Spanish and Italians could fly - but why would they?

The markets have just realised this and today the yield on a 10-year Greek government bond has jumped to 7.67%, compared with about 3% for a German bond.

Not good. If the IMF talks fail that volcano had better stop erupting soon or Greece will have some kind of meltdown.


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