Papandreou survives! But will Greece?
Or the EMU for that matter?
Pimco’s Balls was on Bloomberg earlier today and he highlighted most of the obstructions Greece is facing in their crisis.
Honestly I just feel bad for the Greeks, they’ve been enduring hefty austerity measures just to avoid default and yet, I see no way out of this for them outside of it. Practically every proposed solution fits the S&P’s definitions of default, and even if they didn’t, a debt rollover might piss off Ireland and the ECB itself isn’t even allowed to participate in it.
The big elephant in the room regarding rollover is the ECB’s own Greek holdings. They’re number one in that table. The ECB legally can’t roll them, because there’s no way it would be allowed to buy debt in the primary market, at auction, without breaking Article 123 of the EU Treaty. Funny, a program meant to restore liquidity in Greek bonds has ended up wrecking them.
Not to mention it’s the Greek banks - those most likely to default- that holds most of the bonds.
Leaving the EU isn't an option as well; doing so would only leave France, Germany, and the rest of the core countries with an insane amount of debt they'd most likely have to take cuts on. This will obviously not bode well for the rest of the PIIGS, who will surely demand comparative treatment, further complicating the matter.
Politics, man…
Guess it’s time to bid the Euro adieu.
How about you monkeys?
Do you see a way out of this for Greece?
Or will the Eurocrats do what they do best and screw this up some more?
Have a good one WSO.
This is a clusterfuck that is only being made worse. Buy the VIX...
Buy time just means they're trying to get out of loaning money. Bad sign.
I will be surprised to see greece vote to pass the austerity measures. The confidence vote only 155 votes. Really can't see any scenario where they don't default unless eurozone makes them a lot more generous
Also future united states of europe? Its either that or kicking out the piigs who don't follow austerity.
I feel less than zero sympathy for the Greek people. One of my best friends is a first generation American from Greece. From what I understand about Greeks based on what he has told me, they have a lazy, entitled, me-first culture, which is borne out by their refusal to sacrifice for the salvation of their nation. If you refuse so-called austerity measures (measures that would put their public sector still better off than the average American public employee) then you lose my sympathy. We are getting to the point where the Greek people will literally be forced to endure "austerity" at the barrel of a gun. If it comes to that then this generation of Greeks will prove that it is the nation's worst generation, a pretty pathetic dishonor for a 4,200-year-old culture.
The nation of Alexander the Great reduced to whining in the street over having their vacation time cut. It is f*cking pathetic.
Alexander the Great was from Macedon. ;) But otherwise you're pretty on point.
My view on this is that things have to get worse before they get better. Something's gotta give sometime. The Greeks will cross the line and default, and things will be scary for a while. But this is what it's going to take for any meaningful action to take place.
Lol, get a history lesson bro. http://en.wikipedia.org/wiki/Alexander_the_Great
Well the have their pension ready at like 50-55, the rest of the EU is all older.
The best is to kick Greece out the euro. Yes the banks will suffer major losses and the stockmarket will take a hit. But it;s better then pumping money in to Greece for ages and not seeing anything in return because they won't be able to pay anything back.
Andrew Balls. Epic.
That guy's name is as good as my last post's title on greece lol
Jokes aside, do you guys think that the sellout of ING's car leasing unit + their US online bank for a combined total of $14.7 billion has anything to do with getting ready for a potential greek default / serious haircut ? European banks have serious exposure to greece... maybe the board is listening closely to the risk management team ?
European bank exposure on PIIGS debt: http://www.economist.com/node/18560535
ING article 1 : http://www.reuters.com/article/2011/06/20/us-ing-idUSTRE75J15X20110620
ING article 2: http://www.reuters.com/article/2011/06/17/us-capitalone-ing-idUSTRE75F5…
I know they sold ING Direct to Capital one because the European Commission ordered them to because they bought an other company. They also want to pay of the their debt owed to the dutch government in may 2012, which could be a reason they want to sell the car leasing unit.
I don't think it has to do with a possible default, they're just reorganizing a lot.
Ok, this makes more sense.
Provident nisi a velit dolores corrupti quos est. Hic dolor eius aspernatur consequatur voluptatum voluptas est illum. Et sed doloribus non voluptatem et.
See All Comments - 100% Free
WSO depends on everyone being able to pitch in when they know something. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value)
or Unlock with your social account...