"Sovereign Debt" belongs in the NewSpeak dictionary. It's kind of like calling someone "King Slave"....
The whole EU currency is nothing more than a social experiment in a sense. Check out the the member states values in the calculator. http://noir.bloomberg.com/invest/calculators/currency.html Most of the member states are still present and have values updated real time. I really like how the value of the member states added up to about the current value of the Euro dollar. The P.I.G.S. are being sacrificed to save the core nantions. Akuima
Der Spiegel has always been known for their sensationalists articles, more then half of them turn out to be false ... leaving the EU would mean suicide for the Greeks as they'd have to devaluate immediately by something like 50% while their debt would still be in euro. Moreover it couldn't be done from a practical point of view: it's not like they have drahmes lying in some vaults just to distrubute to the population. This whole article is a big hoax most likely planted by some euro short sellers to create panic ...
+1 As soon the EU announced a ban on naked short CDS the article showed up. For the global financial system it seems it would be better for Greece to default because of the huge bets in the destruction of a whole country they have made so to make up the losses of the subprime crisis. Of course, the people resposnsible for that are the Greek scocialists (?) who allowed this to happen. The Greek peoples should prosecute them Romanian style and hang them in central squares. They kept borrowing and driving debt out of limits without regard to the future. These people (politicians) deserve death sentence and only death sentence, nothing less.
Hi guys I am new here. Somewhat off topic but I would like to ask you if I may, my sister more like a cousin wants to join research on trading with me. It is a good idea to talk to other people about my strategies. Would that undermine my work. It is a good idea in general to talk to traders about strategies/indicators
That's incorrect... Rates you see for the old ccies are NOT actually updated real time. They're just numbers calculated using the current EUR rate and a fixed ratio that was calculated when the common ccy was introduced. So, for example, DEMUSD will always move precisely in line with EURUSD, since EURDEM is fixed at 1.95583.
While this article is sensationalist, I am sure that there is some fire behind the smoke. Quite clearly, the Greeks are using their ultimate argument now in an attempt to improve the terms of the bailout. If they leave the EMU they'll most certainly redenominate the debt to drachma, since it would make no sense to exit otherwise. As to drachmas, it's not that hard, really.
I also heard the Greeks are trying to recruit Mugabe as treasurer to help introduce the "New Drachma."