"The Markets" betting on a Greek default

[marmar]

(Bloomberg) Greece said it has no plans for a debt restructuring even as German officials openly discuss the possibility and investors charge a record amount to insure the country’s obligations.

“Restructuring is not an issue we’re discussing,” Greek Finance Minister George Papaconstantinou said in an April 16 interview in Washington. “The pain and the cost” of doing so would be greater than repaying lenders, he told reporters the same day.

Greece found support from International Monetary Fund Managing Director Dominique Strauss-Kahn and French Finance Minister Christine Lagarde after German Finance Minister Wolfgang Schaeuble was quoted as saying “further measures may have to be taken” if Greece fails a June audit. German Deputy Foreign Minister Werner Hoyer said in an April 15 interview that restructuring “would not be a disaster.”

Traders are betting on a default. The cost of insuring Greek sovereign debt jumped 56 basis points today to a record 1,211 points, according to CMA prices for credit-default swaps. That indicates there’s a 64.5 percent probability of default within five years. ...........(more)

The complete piece is at: http://www.bloomberg.com/news/2011-04-17/greece-denies-restructuring-plan-as-traders-raise-default-bet.html

[no_hypocrisy]

1. Break out those derivatives!

How soon before the Financial World starts betting on THIS country to default?