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Old 08-22-2012, 01:38 PM
 
29,986 posts, read 39,274,485 times
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Interesting points from CNBC analyst: The Euro is Already a

Quote:
Lynn believes that any progress made by European politicians is irrelevant as the euro has already turned into a “zombie currency”.

He says countries can no longer use the single currency for imports meaning it is effectively ceasing to act like money.

“There are already reports that oil traders don't want to supply clients in Greece,” Lynn said.

“Why not? Because in six months’ time when payment falls due they may not get paid in the currency the deal was struck in – but one worth much less.”
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Old 08-23-2012, 12:21 AM
 
Location: The North
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People just love to stretch and reach. If you don't want to supply Greece that is a credit risk, not a currency risk. Buyers have an obligation to pay in euros, not any other currency (well maybe dollars too). The risk is the buyer won't have the resources to pay, doesn't really matter what currency is legal tender at repayment time
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Old 08-23-2012, 04:38 AM
 
Location: Vallejo
16,231 posts, read 18,174,754 times
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Except the Greek government owes a bunch of biggie big banks in Europe a ton of money. When they can't pay that debt and default and take all those banks with them, then what? Option 1: Euro currency collapses. Option 2: Euro is devalued to bailout the banks the Greek government just defaulted on. Either way, it's a currency risk. Either the Euro ceases to exist as it did (Weimar Republic style) or it is devalued to save it. If Greece tanks, it devalues the Euro with it one way or another. The banks are already past the edge (Libor scandal, lying about rates they borrow because they borrow at rates that only banks on the ropes borrow at and want to avoid scrutiny of regulators looking for banks on the ropes). They would not survive without much more significant intervention should Greece go down.

Companies very rarely have the extent of debt that Greece has, and even when they do, they have assets that can be seized during bankruptcy... can't do that with a sovereign country. No one is getting Athens in exchange for the money owed to them.
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Old 08-23-2012, 11:24 AM
 
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Quote:
Originally Posted by Willy702 View Post
People just love to stretch and reach. If you don't want to supply Greece that is a credit risk, not a currency risk. Buyers have an obligation to pay in euros, not any other currency (well maybe dollars too). The risk is the buyer won't have the resources to pay, doesn't really matter what currency is legal tender at repayment time
If the Euro isn't going to be legal tender. Then I wont sign a contract in it. The Euro is in deep trouble.
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Old 08-23-2012, 05:44 PM
 
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Not at all as it represents goods produced in all of europe.that is basically what curency is or should be.Europe has a whole prodcues alot of goods.
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