Thanks to Greece Eurzone is a no-go area

As a result of the Greek crisis most fund managers are now underweight in Eurozone bonds and equities and overweight in Asia. The general feeling is the Greek 'rescue' wont work. The Greeks raise €1.6 bn yesterday in 6 and 12 month T bills which wiil need refinancing in 6 months time. Postponing the inevitable! They paid 4.85% for 12 month money, an eye watering 4.3% above German rates.

The opposition politicians in Athens have noticed this. They are calling it usury and demanding a debt restructuring i.e. a default. The ruling PA-SOK party is expected to split over this issue. The Brussels 'crats cannot afford to countenance a default and the Greeks cannot do without a default. The irresistible force meets the immovable object!

The fact is those who bought Greek bonds earlier are now nursing large losses so its once bitten twice shy. Greece needs €11 bn by end of May so the Eurozone countries are going to be asked to put their money where their politicians mouths are.