Greek debt default-very likely!

Discussion in 'Current Affairs, News and Analysis' started by muhandis89, Jun 9, 2010.

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  1. ...according to a lot of economists. So what happens if it does? Does that not result in a run on the Euro, which makes the Euro cheaper thereby lessening the costs of exports to its Banker, the Germans, enabling the German economy to grow.

    This in turn strengthens the Euro (as Germany are its Bankers) and everybody in the Eurozone is happy. Apart from the Greeks of course who have just watched its already unaffordable loan become more expensive.

    This is how it was explained to me - but I'm no economist.
  2. Lets be honest everyone who lent to Greece is going to have to take a serious haircut and Spain and Portugal and...
  3. Think of how many Billions of Pounds have been sunk over the last 40 years into Northern Ireland,Scotland and Wales, sometimes England´s own fault for closing Industries etc but still a serious bloodletting of financial resourses;Same thing with Greece and Spain but that doesn´t mean that the Union will collapse with it or the Euro go flying out of the window.

    You sometimes need to lick a lot of windows to get a clear view!! :twisted:
    Only joking lads!
  4. If Greek defaults on debt it is not the end of the world. The banks & financial organisations that lent Greece money will have significant losses, but probably nothing terminal (and hopefully no taxpayer support is required).

    However, after losing money on their Greek debt, banks would be very wary about other EURO countries in the same position, and the value of Spanish, Italian, Portuguese and Irish debt bonds would fall. This devaluation of assets would create a similiar scenario as the US morguage credit crunch that kicked off the current crisis. We would see more taxpayer payouts to banks and likely some European (including UK) financial institutiuons failing. Not good for anyone either paying tax, relying on public services or with savings and pensions.
  5. The Greeks simply do not have the industrial or fiscal base,to pay back these 'Euro' loans!

    Years yet to run on this one
  7. No taxpayer support. Yeah, ok. I won't cum in your mouth and the check is in the mail.

    Dream on...This is going to cost the UK, Europe, and the US BIG TIME.
  8. Eurcrats make bad decisions,but only the taxpayer pays!!!
  10. All at fire sale prices that would have had Stavros spitting with rage last year, yes the Chinese are optimistic about the future, the Chinese future. Mind you they will do a far better job of running Greece that the locals.
  11. Well watched Hardtalk last night & Wolfgang being interviewd & is 'confident' about the Greece situation,

    However start talking about Germany's own internal problems & his body language looks rather uncomfortable to say the least?