by Bespoke Investment Group
Below is an updated chart of Greek default risk now that Prime Minister George Papandreou has been given the go-ahead to implement new austerity measures. Earlier this week, credit default swaps that insure $10,000 worth Greek debt for 5 years hit a high of $2,421 per year. You would think that default risk would have dropped by quite a bit now that the austerity measures have passed, but that hasn't really been the case. As shown below, default risk has dropped a bit, but it's still just under $2,200 per year. Whatever Papandreou did, it didn't do much to scare off traders betting on a Greek default.
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