Greece and The 21 Countries Most Likely To Default

Business Insider has a list of The 21 Countries Most Likely To Default

There is speculation going around that a default by Greece is "almost certain", even a quickly as this Sunday.  Now Greece is not a huge country, they rate 32nd in GDP ranking in the world, but if Greece were to default, it could set off a domino effect not unlike 2008 when Lehman Brothers went tits up.  It could be a Greece default leads to other country's like Portugal, Ireland having some sort of default, but the big one to watch would be Spain.  Their GDP world ranking is near Canada's at about 12th.  All of these country's have bond yields in the double digits and remember they all had housing bubbles like Canada.   Could you imagine an average Canadian household renewing their mortgage at double digits these days?  Having a few of the over indebted Euro zone country's default or just even get a bailout would send shockwaves around the globe.

The 5 year Canadian Government Bond is not at it's all time low, but it is in the ball park of all time lows and it could be signaling some major trouble ahead. While some will say that this is great for fixed rate mortgages ( and it is) it also means the so called recovery is losing steam and the possibility of another recession around the corner looms.

Keep your eyes on Greece and the rest of the PIIGS, but keep your head on a swivel and occasionally take a look at the China Bubble.

The ride may get a little bumpy.