ΚΑΛΟ ΤΟ ΠΑΡΑΜΥΘΙ ΤΗΣ ΕΠΙΜΗΚΥΝΣΗΣ ΑΛΛΑ Ο ΔΡΑΚΟΣ ΕΙΝΑΙ Η ΧΡΕΩΚΟΠΙΑ

The facts: At the height of the last Greek debt crisis — on February 8, 2010, to be exact — the cost of insuring a €10 million 5-year Greek government bond reached a peak of €420,855.

But last week, the cost on the exact same instrument had surged above €1,000,000!

That’s like shelling out an outrageous $50,000 for a term life insurance policy that pays no more than $500,000 in death benefits.

Why so expensive? Because investors now realize that austerity, no matter how necessary, can never be a quick ticket to fiscal balance.

In fact, the more the Greek government has cut spending, the more its economy has sunk. Ditto for Ireland and other countries.

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