By John Galt
June 21, 2011
With the headlines screaming about Greece having the most expensive debt to insure in the world yesterday, the charts are just as painful. The one week chart of the 5yr Greek CDS from Bloomberg only tells half of the story:
But even with the odds in favor of the Greek government capitulating and voting for austerity measures that they will never fulfill for the second time in two years, the long term trend and belief of the markets is the inevitability of Greece defaulting. The three year chart tracking the course of 5yr CDS reflects that also:
As the protests grow louder and the resistance to paying taxes and supporting the programs imposed on them by the government without giving the banksters a haircut, look for a short term decline in CDS spreads then a sharp increase in the months to come. The Greek people, much like the citizens of the other PIIGS nations have no desire to live and exist to supplant the profits of the various European and American banksters.