According to the Bank of Greece, bank deposits have declined to 2005 levels. Hey, I thought CNBC and Fox Business talking heads were saying “All Quiet on the Gyro Front”!
Apparently, the Greek default crisis is not over yet (in fact, it will be ongoing), although the 10Y Greece sovereign debt yield is considerably below its peak from the last time Greece threatened to default on its debt.
The Greek 3Y sovereign yield is 13.38 percent. The German 3Y sovereign yield is -0.184 percent. That is a spread of around 13.50 percent (meaning that German banks can borrow at near zero rate and lend to the Greeks at 13.38 percent. Now THAT is a spread.
Of course, the German banks will go up in flames if Greece actually defaults.
Even the Bank of Greece internet banner is depressing.