The look in their eyes..

The bond trader.

The markets reacted as expected the spreads went down to about 320bb as low as 80 basis points.. then by mid day they climbed up to about 350bb.
So € 40 billion standing facility took off 50 bb. There are two reasons I think.
The first is they do not trust the Government. They think it’s a ploy for as long as Greece says that we do not want the package or more street jargon “we did not ask for help.
The market believes that the government is using this aid package as a “silent gun” to avoid bringing to the people of Greece the package that is needed. The politicians want the best of two worlds. Stay in power by avoiding taking the measures and use the EU/IMF package as a threat to the markets to get cheap financing… HOW STUPID CAN YOU GET.
As in any company that gets new financing a precondition is that management that created the problem needs to go. In our case the people that participated in governments that created the problem are now posturing themselves as the saviors.
Finally one concludes that the market does not eat «κουτόχορτο». It does not TRUST THE GOVERNMENT and “we do not need help” stupidities reinforces their mistrust.
I was told once by great bond trader that he decides to whom to give money by looking them in their eyes and seeing what they are made off. In this case the market has looked at the eyes of our Government and has made its decision.