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Greece is like a drunk crack-head. Cut them off. It's just that simple.
No more soup for you...
Mircea
Quote:
Originally Posted by HappyTexan
I think they have to. Greece hasn't really done much to reign in spending and now the problems in Spain are too big to ignore.
Bingo. Greece did nothing. Well, that isn't quite true: Greece thumbed their noses at everyone. What the hell were they thinking? I don't know.
I agree with Citi. I think Greece is just going to let it ride, then decouple from the Euro and go back to the Drachma. They can print as much as they want. I have to believe they are under the misguided impression that they can keep Real Inflation under control. That plan is not going to work.
And seriously, Greece or Spain? Spain any day of the week.
Greece is like a drunk crack-head. Cut them off. It's just that simple.
No more soup for you...
Mircea
Bingo. Greece did nothing. Well, that isn't quite true: Greece thumbed their noses at everyone. What the hell were they thinking? I don't know.
I agree with Citi. I think Greece is just going to let it ride, then decouple from the Euro and go back to the Drachma. They can print as much as they want. I have to believe they are under the misguided impression that they can keep Real Inflation under control. That plan is not going to work.
And seriously, Greece or Spain? Spain any day of the week.
Concurring...
Mircea
Oh I agree. It should have been done a while ago IMO. Yep Spain is not far behind.
one thing the US treasury can do that greece cannot is print more money to pay for it's debt.. indeed that does devalue the currency.. but.. comparing the US to greece is kinda apples and oranges...
Don't confuse the movement of money as a bank run. Singapore and the USA attract hordes of capital around the globe at the same time that capital leaves. Basically these two entities are like giant banks.
In Greece the money is going in one direction, out.
I hear ya and understand. What concerns me is the amount of folks that are focused on "bank run" at this time. I dare to consider that there is something fascinating called the collective consciousness. I do because I experience more intuitive leading that's on target time after time, in myself, and a few around me.
Is the news freaking folks out into greater worries about this possibility in their own nations, or are folks tuning-into their near-futures, perchance?
When the US dollar isn't the worlds currency anymore, which China and Russia are angling for, there won't be anybody to buy that debt. Then we are in a world of trouble. We either got to war or feel the pain. Those in power will choose war I'm sure. It's why we've been fighting since the dollar was pegged to oil in the seventies.
When the US dollar isn't the worlds currency anymore, which China and Russia are angling for, there won't be anybody to buy that debt. Then we are in a world of trouble. We either got to war or feel the pain. Those in power will choose war I'm sure. It's why we've been fighting since the dollar was pegged to oil in the seventies.
Absolutely correct. Sad as it is, and it appears inevitable. Keep printing currency as if it was Game Board Bucks and Math, being an absolute will bring the dollar down. Many folks get it, and are hunkering down. I feel sorry for those that are partying hearty right now, and thinking it can never happen to us.
How many bought bonds in the hope of loading up on interest payments from Greece to fill their accounts?? Pleny I'll bet. Now they are the ones left holding the bag so to say as those bonds won't be worth zilch. Who loads ip the IMF's account???
"The main direct losses correspond to the €240bn of Greek debt in official hands (EU/IMF), to €130bn of Eurosystem’s exposure to Greece via TARGET2 and a potential loss of around €25bn for European banks. This is the cross-border claims (i.e. not matched by local liabilities) that European banks (mostly French) have on Greece’s public and non-bank private sector. These immediate losses add up to €400bn. This is a big amount but let's assume that, as several people suggested this week, these immediate/direct losses are manageable. What are the indirect consequences of a Greek exit for the rest?
The wildcard is obviously contagion to Spain or Italy? Could a Greek exit create a capital and deposit flight from Spain and Italy which becomes difficult to contain? It is admittedly true that European policymakers have tried over the past year to convince markets that Greece is a special case and its problems are rather unique. We see little evidence that their efforts have paid off."
How many bought bonds in the hope of loading up on interest payments from Greece to fill their accounts?? Pleny I'll bet. Now they are the ones left holding the bag so to say as those bonds won't be worth zilch. Who loads ip the IMF's account???
"The main direct losses correspond to the €240bn of Greek debt in official hands (EU/IMF), to €130bn of Eurosystem’s exposure to Greece via TARGET2 and a potential loss of around €25bn for European banks. This is the cross-border claims (i.e. not matched by local liabilities) that European banks (mostly French) have on Greece’s public and non-bank private sector. These immediate losses add up to €400bn. This is a big amount but let's assume that, as several people suggested this week, these immediate/direct losses are manageable. What are the indirect consequences of a Greek exit for the rest?
The wildcard is obviously contagion to Spain or Italy? Could a Greek exit create a capital and deposit flight from Spain and Italy which becomes difficult to contain? It is admittedly true that European policymakers have tried over the past year to convince markets that Greece is a special case and its problems are rather unique. We see little evidence that their efforts have paid off."
Perhaps the best way to understand what went wrong with the Greek adjustment program is to compare it with Iceland’s program. On Nov 3rd 2011, the IMF issued the verdict on its 3-year adjustment program for Iceland. The IMF’s verdict was that its “program for Iceland was a success” due to 4 factors:
the decision not to make taxpayers liable for bank losses.
the decision not to tighten fiscal policy during the first year of the IMF program.
preservation and even strengthening of Iceland’s welfare state during the crisis.
prudent use of capital controls. The IMF said: “capital controls were necessary and are now seen as useful addition to policy toolkit”.
I don't understand why governments are bailing out these banks with taxpayer funds. Let them go under. Don't these countries have deposit insurance?
Well the cheerleaders are out in full force today.
The "polls" report a slight edge with the pro-austerity group.
Wall Street rejoiced and is on a buying spree.
And the "ship of fools" sails onward toward Utopia
European shares, euro gain as Greek fears ease - Yahoo! News
"The recovery was boosted by the publication of five Greek polls on the weekend which showed the conservative New Democracy party, a supporter the bailout plan, with a slight lead over the anti-bailout leftist SYRIZA party,.."
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