They are talking about bankruptcy again but the Athens Exchange is not sweating it

What if the scenarios about bankruptcy persist, with the British newspapers (FT - The Guardian) passing the baton to the American Wall Street Journal? The Athens Exchange does not seem to be sweating it…

The aggressive spread decrease to 760 units (with purchases at the level of 803 units), and the upgrading of the Greek stock market by Credit Suisse have caused a market explosion towards Athens. American companies like Morgan Stanley and Goldman Sachs are leading the purchases. There is 2,90% profit with the general index at 1639 units, 5,10% profit for the National Bank at 7,42 euros, over 6% for Piraeus and over 5% for Eurobank, Cyprus and Alpha Bank, 3,3% profit for OPAP and over 2% for Mytilinaios and Jumbo.

However, today  the WSJ is citing expert analyses of the market, especially the development of yields in the bond market (and especially at the risk premiums-CDS) to justify the view that even Egypt, which is on the verge of civil war, is less likely to go bankrupt than our country!

Despite the drastic decline in spreads in the 10-year Greek bonds, which have led to values of less than 800 units, the WSJ  “experts” believe that the insurance risk for the Greek debt is more than twice that of the Egyptians! In fact, Egyptian spreads are at 440, which means that markets “see” double chances of bankruptcy for Greece compared to Egypt!

The newspaper concludes (?) that despite the obvious major progress in Greece’s financial issues since the start of the crisis and despite the support from Europe – confirmed in Davos – international investors continue to believe that a Greek bankruptcy «is just a matter of time».

And it ends with a typical phrase attributed to a president of a major foreign bank regarding Greece: «They must be taking drugs if they think they can repay the debt»…