Greece Greece and more Greece

Discussion in 'Economics' started by mastacoli71, Feb 1, 2012.

  1. It makes me wonder why the world markets are so excited about a 70% writedown on Greece debt. Think about it, 70% writedown. How many time has Greece PM and Finance minister said we are close to a deal. Why is it the private sector responsibility to absorb the cost while the ECB stands pat. Makes no sense at all.

    Europe is where the US was 4 years ago. It's a wicked cycle. They think what worked in the past will work again. This time they will be left holding the bag. Let free market capitalism play out.

    I may be dead wrong on this. Comments are welcome.
  2. What is next, Portugal?
  3. Huh? Anyone buying any bond anywhere from anyone is engaging in speculation to some extent. If you get burned, too bad.
    As to the ECB, if they take a loss it technically would mean that they were subsidizing the Greek gov't by buying Greek bonds, rather than engaging in simply a form of monetary easing. This is forbidden by their charter. That's why they aren't supposed to take a loss.
  4. Mvector


    Italy is going to be nasty for EU if that starts to be the prime problem country ahead - that is the country I am watching for as my over / under signal.
  5. Moreover, ECB taking a loss is purely symbolic. I am not really sure why there's such fixation over it (other than maybe the issue of precedent).
  6. It is not about Italy, Portugal or Greece. It is about the fact that the time has come for debts to be repaid and nobody can do it, including Germany. So Germany keeps the attention on others. It is a basic strategy for diverting attention and using Greece like a mouce in an experiment. France and Germany together have borrowed more than 3 trillion to finance the standard of living of their citizens.

    Total EU debt exceeds that of the US.
  7. And it is getting more expensive. The ageing demographic is starting to kick in and the public pensions are higher than they have ever been.
  8. Right, never said that bond buying is risk free. Why do you think there are cds's? They are being strong armed into taking the deal to keep the financial system from collapsing.
    It's bs.

    Greece and other euro countries have been living on borrowed time for years. It's like a drug addict that can't afford to pay for their next fix. Once a drug addict always a drug addict. What is happening is only delaying the inevitable.
  9. Fain


    They should be forced to liquidate some of their islands to cover their insolvency.
  10. why is europe so stupid?

    Why did they feed this lazy bum for so many years?

    work for 12 months get paid 14 months

    evade taxes anyway you can and don't get caught

    work only 5 hours a day

    I mean how can you compete the world with this kind of a system?
    #10     Feb 2, 2012