Greek 10yr government bond yields 9.48% (+0.07) today – on their seemingly unstoppable march towards double digits. If everything goes according to plan (which it never does), Greece’s debt-to-GDP ratio will peak at 150% in 2012 or 2013. Hence if you pay 10% interest on your debt you need to fork over 15% of GDP to your lenders (of which 80% abroad). No economy has ever succeeded in pulling off such a stunt. Nevertheless politicians keep repeating the same old lie “Greece will not default”. Meanwhile Greece has replaced Argentina as the world’s second most likely country to go bankrupt:

Source: CMA