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German magazine Spiegel:Greece could reintroduce its own currency

  1. Huh? Has toilet paper become too expensive thanks to Bernanke's inflation??
     
  2. Wait, is the Greek situation the Fed's fault as well? I did not know that...
     
  3. I would walk away too if I was them. This crisis has taught Greece that a nation must have control over their currency in order to make the most effective policy.
     
  4. + 1

    It depends though on the politicians. If they use the printer for own objectives and they print more than the GDP growth then it can be fatal.
     
  5. YES!! Greece must secede from the EU to carry on with its traditional debt default that has historically taken place every couple of decades as it has done throughout its history.
     
  6. When I read the article I was reminded of some calls made here on ET for the Euro to crash.
    If Greece really does carry thru on this threat, it'd be a game changer for sure.
    I'd bet this is just a threat to get more money from IMF, etc.
     
  7. Just imagine how strong the Euro would get if Portugal and Greece, maybe Ireland, left voluntarily. Why should Germany et al even care if the weakest links stay; just as long as they're still part of the EU.
     
  8. no impact on the euro if greece abandons the ship.

    in fact, if weaker economies exit the euro, the currency will become even stronger as its fundamentals will improve and the monetary policy will reflect that.
     
  9. You know Argentina and Greece are different countries. Greece's last default was I believe in 1932.
     
  10. "Sovereign Debt" belongs in the NewSpeak dictionary.

    It's kind of like calling someone "King Slave".... :D
     
  11. They could create a tax-free haven for Europe's rich, weather is good 9 mths of the year..
     
  12. 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
     
  13. 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 ...
     
  14. +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.
     
  15. 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
     
  16. 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.
     
  17. 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.
     
  18. I also heard the Greeks are trying to recruit Mugabe as treasurer to help introduce the "New Drachma."
     
  19. Greece is already a tax haven for Greeks, so why not? :)
     
  20. it is too late. obama has only ready recruited mugabe to introduce the "new $US."
    ____________
    http://www.spiegel.de/international/europe/0,1518,761201,00.html

    is this the reason for the rebound in the euro? the euro will be ex greece ex portugal etc.
     
  21. Germany is on the hook here either way. If a Euro break somehow happened, it would spark an immediate capital flight, exchange controls, credit freeze, and implosion on all Euro debt. Would you hold your Euros in Greek institutions, waiting for them to be exchanged for worthless new-drachmas?

    It would be a disaster -- a REAL disaster, not a paulson/blankfein wink-wink "disaster." Food shortages, riots, and civil unrest disaster. Germany and other EU forces wouldn't be able to just sit on the sidelines, and would have to clean it up anyway.

    There's no way to break clean of this, short of war. It's better to pay them off now and limit it to financial impact to at least save the physical damage cleanup costs.
     
  22. To paraphrase Stalin, how many divisions does the bond market have?
     
  23. What are the investment banks in US that underwrite the 5 yr. CDS of Greece? And is there a link to that no. today? Last time I check, it was sitting at 981.2, but that was a few mth. ago.
     
  24. people always say trade on rumors

    if that was profitable people would start rumors all the time just to profit from it
    I don't trade on rumors
     
  25. quite the contrary, we shouldn't let them jump ship, and re-finance their treasuries to 5 to 7 yr. Because in 5 yr., most countries would be in good shape and out of their current econ. situation. Then in 5 yr., we can AFFORD to let greece jump ship, because we can then absorb the damage in 5 yr., but not now
     
  26. All the big i-banks quote this... Closed today at 1360.
     
  27. If they do that Greece will be thrown back a couple of centuries. And I'll have to change my vacation spot.
     
  28. If it looks like they are going to withdraw it seems the run on the banks will be instant, furious and sustained. It is an awfully big decision to go back to home grown ... particularly since no one want their home grown.
     
  29. From your link:

    "It emerged Sunday, however, that finance ministers from Europe's largest economies, including Germany, France, Italy and Spain, have already attended secret meetings several times in order to be able to discretely discuss the euro crisis, the Süddeutsche Zeitung newspaper reported on Monday. "

    Secret meetings? This sounds like mafia rather than a legitimate union of countries. Why should they hold secret meetings? Think about it. Politicians are supposed to work for people who elect them and be thoroughly accountable. Holding secret meetings where nobody knows what they discuss resembles to the activities of secret societies of the past.
     
  30. Here's some bad news: S&P rating said we need to forgive 50% of the debt, i.e. a partial jump ship, this is stated in their downgrade on Mon.
     
  31. Greece uses the euro. It's not going to corrupt lol.