Seeking Alpha: Monday (Global) Meltdown

Monday Meltdown: Global Edition

September 12, 2011  |  includes: BNPQY.PK, CRARY.PK, CS, DB, DIA, DXD, FAS, FXE, GLD, MCD, QID, SCGLY.PK, SPY,TLT, TZA, UBS, UUP, VXX, XLF

108%!

That's how much Greece is paying today to borrow money for a year! In theory, if you lend Greece $10,000 today, next year they will pay you back $20,800. In THEORY that is because, at 108% - IF they actually borrowed at that rate, you could be very sure that they would not be around to pay you. That's the joke of this whole thing - we have these insanely unrealistic prices being set on bonds, which only hurts the people who have outstanding ones and need to redeem them as Greece doesn't actually borrow money for even double-digit interest rates. It's all a silly, artificial construct that is only useful in spreading panic among investors.

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