{"id":352452,"date":"2010-02-22T17:31:00","date_gmt":"2010-02-22T22:31:00","guid":{"rendered":"http:\/\/www.businessinsider.com\/did-an-uber-steep-yield-curve-create-a-death-trap-for-greek-banks-2010-2"},"modified":"2010-02-22T17:31:00","modified_gmt":"2010-02-22T22:31:00","slug":"warning-to-wall-street-see-how-an-uber-steep-yield-curve-created-a-death-trap-for-greek-banks","status":"publish","type":"post","link":"https:\/\/mereja.media\/index\/352452","title":{"rendered":"Warning To Wall Street: See How An Uber-Steep Yield Curve Created A Death Trap For Greek Banks"},"content":{"rendered":"

As we ponder the future shape of the US yield curve — a curve that allows banks to mint free money by borrowing short and lending to the government — we present you with this fascinating chart out of Greece courtesy of Morgan Stanley.<\/p>\n

As you can see, Greek banks devoured bonds as the Greek 10Y\/3M yield curve steepened.<\/p>\n

Of course, if Greece goes bust, all of these long-dated bond purchases will prove to have been poisonous.<\/p>\n

Just something for our banks to consider.<\/p>\n

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