As I mention on the side bar to the right the German courts may not approve of aid to Greece. Here's the details (Reuters)
Greek 10 year spreads widened Tuesday and Wednesday after the weekend announcement of aid to Greece. If this trends keeps up bond spreads will very quickly be wider than before the aid announcement.
I have no idea how much longer this can go on. The IMF may swoop in and provide their share of the funding immediately or a political showdown in Germany may resolve the lending issue. Even if aid does arrive will it do any good? They are so far in debt that some sort of default / currency depreciation (that means leaving the euro) may be the only solution.
ht Credit Writedowns
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