I just saw this chart over at ZH which is draw-dropping:
Consider for a moment these facts:
- Greek bonds have never paid so little;
- Indeed, they pay less than US Treasury Bonds, implying that Greece – – of all places – – is a more stable and reliable investment than the US
- For those not keeping track, Greece has defaulted no fewer than five times in modern history on its financial obligations. This compares to zero times for the U.S.
- In the past decade alone, Greece has been kept alive with $360 billion in bailouts from the IMF and neighboring countries
If you need any further proof of just how distorted how Bailout Culture has made the world of finance and price discovery, I’m not sure what else to say.