Greek Bonds Fall as EU Says Budget Deficit Forecast Unreliable

Greek bonds fell after the European Commission said there have been “severe irregularities” in the nation’s statistical data, leaving the accuracy of the European Union’s largest budget deficit in doubt.

The declines drove the yield on Greece’s two-year note 16 basis points higher, the most in almost a month, after the commission said in a report today “the lack of reliability and the shortage of evidence supporting the deficit figure reported” in two revisions by the government in April and October left the data “in question.” An International Monetary Fund team arrived in Greece today to aid the government in its efforts to tame the deficit.

“You have all these stories about the IMF visiting Greece, the European Commission and a reversal in risk appetite” hurting bonds, said Peter Schaffrik, an interest-rate strategist at Commerzbank AG in London. “A combination of these factors will weigh on Greece.”

The EU is stepping up scrutiny of Prime Minister George Papandreou’s efforts to tame a deficit forecast to be equivalent to 12.7 percent of the country’s gross domestic product this year, more than four times the region’s set limit. EU President Herman van Rompuy will hold talks with Papandreou today, a week after an EU team spent three days in Athens.

http://www.bloomberg.com/apps/news?pid=20601087&sid=a_XY.hXYSyAI&pos=6

 

ohh boy

the january fire sale started today.

lets see who gets what.

 

I think there will be a lot of "aahs" and "ohhs" and "ooppss" when IMF members go through the "books"...

 

Will you do something about the budget?

OH-kee.

 

Greek government used the same accountant as Madoff? Say it ain't so!

 

will Germany be stuck with the bill?
which is more likely Germany will leave the EU or Greece will leave the EU?

 

Don't forget a biggest trouble: Spain

 

Let's be honest with ourselves.

It's all subprime.

We're just watching one domino of many slowly start to tumble.

Every developed or developing nation is going through massive amounts of stimulus at a time of record deficits. All trying to keep the Global Financial Ponzi scheme from collapsing.