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Hussman –

On Friday, the yield on one-year Greek debt soared to 67%. Europe is demanding greater and greater austerity as a condition for additional bailouts, but austerity has already resulted in a depression for the people of Greece, and a loss of tax revenues that has paradoxically but very predictably resulted in even laPresently, the Greek debt/GDP ratio is 144%, and is likely to reach 180% by year-end. It was only in June that we observed (see Greek Yields – Certain Default But Not Yet ), “At the point that a near-term default becomes likely, we would expect to see one-year yields spiking toward 40% and 3-month yields pushing past 100% at an annual rate (essentially pricing near-term bills toward the anticipated recovery rate).”
To see the one-year yield leaping suddenly to 67% is an indication that we should brace for a very serious turn of
events almost immediately.”

An Imminent Downturn… [Such a nice way to put it]
http://www.hussman.net/wmc/wmc110905.htm

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