A full 93 percent expect Greece to default

Discussion in 'Wall St. News' started by ASusilovic, Oct 3, 2011.

  1. Pessimism reigns among investors. A full 93 percent expect Greece to default, according to Bloomberg’s quarterly Global Poll last week. Some 56 percent said Portugal is heading for the same fate, while a majority now sees Ireland, the third aid recipient, returning to fiscal health.
    Sarkozy’s Support

    “The failure of Greece would be the failure of all of Europe,” French President Nicolas Sarkozy told reporters Sept. 30 after hosting Papandreou in Paris. “Remember in 2008, when the U.S. let Lehman Brothers fail, the global financial system paid the price. For both economic reasons and moral reasons, we can’t let Greece fail.”

    Fourteen of the 17 euro countries have approved the reinforcement of the temporary rescue fund. Of the three to go, Slovakia poses the biggest hurdle, with Prime Minister Iveta Radicova squaring off against euro-skeptics within her coalition. Slovakia is slated to vote by Oct. 17.

    The revamped fund, known as the European Financial Stability Facility, will obtain the powers to buy bonds on the primary and secondary markets, offer precautionary credit lines and enable capital infusions for banks.

    Germany’s passage of the upgraded EFSF last week unleashed debate over how to scale up the fund’s 440 billion-euro capacity, potentially by giving it a banking license, using it for bond insurance or to offer credit enhancements.


    The Greece will default trade is so crowded, I can hardly believe EVERYBODY will earn a buck or two... :cool: :confused:
  2. FGBL07


    Hasn't the default already started? Banks started to agree to receive only 80% or so for their bonds?

    Currently that may not amount to much of the whole Greek debt - especially since the banks unloaded their bonds to the ECB or whomever. But the dam is broken.
  3. [​IMG]

    France and Germany are holding only aggregated 17% of Greek bond exposure. This whole "Greek situation" is simply FEAR MONGERING from clueless media outlets...
  4. zdreg


    have cds on greek debt been paid off? if not at what point do they get off?
  5. FGBL07


    The ECB has bought 45 - 50 Billions in Greek Bonds. Where do these show up in your statistic?
  6. [​IMG]
  7. FGBL07


    PSI means what?

    Pandemic Severity Index? :D

    Googling for PSI seems a bit futile.