Friday, April 11, 2014

Taking a Risk, Investors Snap up Once-Shunned Greek Debt


After four years, Greece has returned to the bond market, and investors are looking to get their hands on as many bonds as possible.  This comes with some risk, however.  Greece’s unemployment is still around 27%, but investors are not necessarily looking at the long term health of economies, they are more focused on return rates.  So, just because investors are looking to buy as many Greek bonds at the moment, does not mean that the long term outcomes of the economy will be good.  There is also a chance that all of the money will suddenly leave the Greek financial market, which could be disastrous for Greece.

http://www.nytimes.com/2014/04/11/business/international/greece-trumpets-its-return-to-international-bond-market.html?hp&_r=0

1 comment:

Anonymous said...

This is an interesting article given Greece's current economic state. Hopefully investors will begin looking towards Greece's long-term economic health, so they do not sabotage the economy by focusing on the short-term.