German magazine Spiegel:Greece could reintroduce its own currency

zdreg · May 7, 2011

Quote from fortunatti:

I also heard the Greeks are trying to recruit Mugabe as treasurer to help introduce the "New Drachma."

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.

Madison · May 7, 2011

Quote from WS_MJH:

Why should Germany et al even care if the weakest links stay; just as long as they're still part of the EU.

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.

Ghost of Cutten · May 7, 2011

Quote from MarketMasher:

"Sovereign Debt" belongs in the NewSpeak dictionary.

It's kind of like calling someone "King Slave"....

To paraphrase Stalin, how many divisions does the bond market have?

Happy Hopping · May 9, 2011

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.

Leone · May 9, 2011

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

Happy Hopping · May 9, 2011

Quote from Madison:
It's better to pay them off now and limit it to financial impact to at least save the physical damage cleanup costs. [/B]

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

Martinghoul · May 9, 2011

Quote from Happy Hopping:
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.

All the big i-banks quote this... Closed today at 1360.

elon · May 9, 2011

Quote from intradaybill:

+ 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.

If they do that Greece will be thrown back a couple of centuries. And I'll have to change my vacation spot.

Happy Hopping · May 9, 2011

No, you shouldn't change your vacation spot. In fact, go there and buy everything, if you time it right, by the time you come back, their currency corrupts, you pay nothing.

here's today news, no better than Fri:

http://www.spiegel.de/international/europe/0,1518,761475,00.html

Swan Noir · May 10, 2011

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.