The weekly: Greece to default/restructure THIS weekend? thread

Greece's Debt Nightmare Just Got Worse

According to the latest economic forecasts from the International Monetary Fund (IMF), released on Tuesday, Greece will miss the five-year debt reduction target that underpins the country's 130 billion euro bailout.

The IMF forecast that Greek public debt will rise to 171 percent of gross domestic product (GDP) this year and 182 percent in 2013.

The IMF has also warned the Eurogroup of finance ministers who met in Luxembourg on Monday that Greece's debt would need restructuring and that it will be almost impossible to reduce the country's debt levels to a target of 120 per cent of economic output by 2020.

Jens Larsen, Chief European Economist at RBC Capital Markets, agreed that Greece's current debt situation was not sustainable.

"Greece will definitely have to do another restructuring," Larsen told CNBC's "Worldwide Exchange" on Tuesday.
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http://finance.yahoo.com/news/behind-calm-athens-greeces-debt-101455439.html
 
Quote from TGregg:

Greece's Debt Nightmare Just Got Worse



http://finance.yahoo.com/news/behind-calm-athens-greeces-debt-101455439.html
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Probably why Greece recently signed on to the Financial Transaction Tax. They'll go along with just about anything... perhaps even sacrificing their young... ANYTHING to get some more money!!

The "entitlement mindset" will eventually be broken... but not until blood runs in the streets... literally! Not meaning that just for Greece/Southern Europe... AMERICA TOO!!
 
Quote from TGregg:

08-19-11 07:49 AM

The weekly: Greece to default/restructure THIS weekend? thread

Watch for interesting news after the close today.
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I am still watching.
 
Quote from TGregg:

Greece's Debt Nightmare Just Got Worse

According to the latest economic forecasts from the International Monetary Fund (IMF), released on Tuesday, Greece will miss the five-year debt reduction target that underpins the country's 130 billion euro bailout.

The IMF forecast that Greek public debt will rise to 171 percent of gross domestic product (GDP) this year and 182 percent in 2013.

The IMF has also warned the Eurogroup of finance ministers who met in Luxembourg on Monday that Greece's debt would need restructuring and that it will be almost impossible to reduce the country's debt levels to a target of 120 per cent of economic output by 2020.

Jens Larsen, Chief European Economist at RBC Capital Markets, agreed that Greece's current debt situation was not sustainable.

"Greece will definitely have to do another restructuring," Larsen told CNBC's "Worldwide Exchange" on Tuesday.
More...


http://finance.yahoo.com/news/behind-calm-athens-greeces-debt-101455439.html
More...

Let's accept one simple reality -- Greece has no intention whatsoever to repay any of the debt. Get on with it.
 
Thier intention is irrelevant. They are insolvent. All the purported 'solutions' are all about creating liquidity for defaulted, insolvent, debt. That can never solve the problem. Even if the accumulated soverign debt was forgiven there is no way to fund the current and future deficits; even if you start over. Apart from an inability to pay its accumulated debt, Greece can not afford to pay back any new debt either. You cannot borrow money to fund social welfare consumption and pay pensions at the same time that you drive private production out of your economy, and have any way of ever paying that money back. I can't believe the Germans will really stand for the ECB selling German debt that must be paid back, in order to fund the purchase of Greek debt that can never be paid back. This is going to get much worse than people think...and I know they think it will be pretty bad.
 
Quote from Ed Breen:

Thier intention is irrelevant. They are insolvent. The solutions are all about creating liquidity for defaulted, insolvent, debt. That can never solve the problem. You cannot borrow money to fund social welfare consumption and pay pensions at the same time that you drive private production out of your economy, and have any way of ever paying that money back. I can't believe the Germans will really stand for the ECB selling German debt that must be paid back, in order to fund the purchase of Greek debt that can never be paid back. This is going to get much worse than people think...and I know they think it will be pretty bad.
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so do you think the ultimate result will be a reintroduction of the drachma? They let Greece go and try to save Italy? Hard to imagine that without the EUR going way, way down.

otherwise, any scenario where Greece will stay in the Eurozone?
 
Going back to the Drachma is not a solution for Greece. In order to have a currency, you have to have foreign credit to back it up. Greece has no credit. If it introduces a devalued currency, that currency will fail and turn into hyperinflation. Greece has to stay on the Euro in order to make transaction commerce from becoming even worse. Greece is going to get dramatically poorer no matter what they do.
 
Quote from Ed Breen:

Going back to the Drachma is not a solution for Greece. In order to have a currency, you have to have foreign credit to back it up. Greece has no credit. If it introduces a devalued currency, that currency will fail and turn into hyperinflation. Greece has to stay on the Euro in order to make transaction commerce from becoming even worse. Greece is going to get dramatically poorer no matter what they do.
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joining the Eur is sort of like joining the Mafia, once you take the oath, there aint no going back.

Funny how CHF said, "Nah, I think we'll pass this time."
 
Going to the Euro allowed the Greeks to borrow money at a AAA rating even though they had no way to pay it back. That is hardly like joining the Mafia. Its more like if you imagined that Obama would start a program of unsecured loans for the homeless that were guaranteed by the shop owners of the stores on sidewalks on which the homeless were living.
 
Quote from Ed Breen:

Going to the Euro allowed the Greeks to borrow money at a AAA rating even though they had no way to pay it back. That is hardly like joining the Mafia. Its more like if you imagined that Obama would start a program of unsecured loans for the homeless that were guaranteed by the shop owners of the stores on sidewalks on which the homeless were living.
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True but the added advantage to the shop owners is it makes their goods less expensive to sell abroad. This is what it does for Germany. Their success is based on Greece's failure.
 
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