Parasites of Spring

In last week's post, we wrote, "The price of Greek debt is the next worry." As some economic numbers talk of Spring, today's WSJ notes two year Greek sovereign debt quoted at 13.5%! Mama mia! That's a serious risk premium. Of course, it's more than that: it's the speculators taking a run at the Greek nation with a blue and white bulls eye on its back. There is now blood in the water.

Simon Johnson in his blog suggests that US banks at the IMF meetings are even talking their book and whispering about Greek defaults. I've never been a grassy knoll aficionado, but it's quite consistent with Wall Street's unrepentant and unflagging appetite for feeding on carrion. In a way, it's Wall Street saying that it doesn't believe that our politicians have the smarts or the appetite to close the casino. We'll know more as this incipient crisis plays out.