The Greek stock market – seemingly unbreakable in its animal spirits that recovery is right around the corner for the increasingly depressed nation – has collapsed over 4% today, its largest plunge in 5 months. Being relatively illiquid, it is not clear what the catalyst is (one hedge fund exiting?) but the tensions growing in the fragile Greek coalition (over Venezuela-style controls on medicine prices) perhaps raise the specter of the worst possible scenario – political uncertainty. Also, quietly and behind the scenes, the extremely illiquid Greek bond market has seen prices drop to 6-week lows (yields 90bps higher in the last 3 weeks).
Charts: Bloomberg
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via Zero Hedge http://feedproxy.google.com/~r/zerohedge/feed/~3/yaYd75Q17v4/story01.htm Tyler Durden