Spreads suggest that, after all, Greece will default

Current spreads of Greece over Germany are as high as they have ever been.  If Germany is Europe's saint, Greece is the sinner.  Greece is paying a full 894 bps over Germany's cost of capital.  The market charges Greece 9% more to finance their debt.

Spain's situation is not getting any better as its spreads haven't come down recently.  However, having said that, they are still less than a quarter of Greece's.   
Via RDQ:

Spreads Monitor

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