Calafia Beach Pundit submits: There's a lot of talk today about Greece, and how default looms and social tensions are escalating. As the chart below shows, yields on two-year Greek government debt have soared to 28%, a sure sign that investors fully expect a significant restructuring (a polite word for default) of Greek debt within the foreseeable future.

[Click all to enlarge]



<a href="http://static.seekingalpha.com/uploads/2011/6/15/saupload_greek_vs_german_2_yr.jpg"/>




<a href="http://static.seekingalpha.com/uploads/2011/6/15/saupload_2_yr_swap_spreads.jpg"/>

Yet as this next chart shows, two-year euro zone swap spreads have hardly budged, even as Greek default risk has soared. What this says is that while the market is convinced that Greece will default, the market is only moderately concerned that the risk that a Greek default will prove contagious or otherwise threaten the European


Complete Story &raquo;

More...