Greece gets closer to brink of bankruptcy

Discussion in 'Politics' started by bripat9643, Jan 15, 2012.

  1. bripat9643
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    bripat9643 Diamond Member

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    Greece gets closer to brink of bankruptcy - Telegraph

    Fears are mounting that Greece could be the first European country to default on its debt in 60 years, as the country gears up to salvage collapsed talks over bond repayments on Wednesday.

    Three months of negotiations ground to a halt on Friday night, amid a wave of downgrades by ratings agency Standard & Poor’s aimed at a clutch of European countries, including France.

    The unexpected breakdown in talks between Greece and its private-sector creditors has taken the country a step closer to bankruptcy after a failure to sign up lenders to a voluntary and “orderly” 50pc haircut to their holdings.

    Greece’s finance minister Evangelos Venizelos said talks would resume on Wednesday to “bridge differences” but insiders remained sceptical that a deal could be stitched at such a late stage.

    The clock is ticking for Greece, as a deal must be reached before March 20, when the country is due to receive a further €130bn (£107bn) bail-out tranche from the International Monetary Fund and must make a key €14.5bn bond payment.

    The problem centres on the difference between lenders agreeing to a “voluntary” and orderly default – which would mean swapping into bonds with a lower value – and lenders refusing terms, which would cause a default.

    This type of “credit event” would trigger billions of insurance claims through credit default swaps (CDS), insurance policies taken out to protect investors in the event of a default.

    The problem is that, of the €315bn of Greek debt outstanding, only €7.8bn is covered by Greek CDS. The vast majority of Greek debt is held by European banks, which have little insurance on their exposure. Most Greek CDS are held by hedge fund managers – accused by Germany and France of financially benefiting from sovereign woes.
     
  2. Charles_Main
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    Charles_Main AR15 Owner

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    I am not sure why the United States is helping prop up the Euro. I mean lets be honest here people. The Euro was set to take the Dollar on as the Worlds Dominate Currency. When, and it is when not if, the Euro Zone Experiment fails and the Euro with it. The World will turn to the Dollar in mass numbers as a place to run to and it will be a very good thing for the US economy over all.
     
  3. editec
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    editec Mr. Forgot-it-All

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    Yeah?

    Then what happens?

    Do Greece's creditors get ownership of the Parthenon?
     
  4. bripat9643
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    bripat9643 Diamond Member

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    It means that when government employees attempt to cash their paychecks they bounce.

    That will be fun to watch, eh?
     
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  5. waltky
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    waltky Wise ol' monkey Supporting Member

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    Watch out for the Greecian spring...
    :confused:
    Greece lurches closer to collapse
    January 17, 2012 - Greece could finally default in March when massive bond payments are due.

     
  6. g5000
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    g5000 Diamond Member

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    I blame negroes and the CRA.
     
  7. g5000
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    g5000 Diamond Member

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    Because if the Euro collapses, we will be right back in the global credit crisis of four years ago, and this time there is no Wall Street bailout money, and no tolerance for one. It's all the same players, same financial instruments, same root causes.

    Welcome back to the abyss.

    If you don't learn your lessons from the last crisis, you always get a chance to learn again.
     
    Last edited: Jan 17, 2012
  8. syrenn
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    syrenn BANNED

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    At the end of every day the check comes due....
     
  9. Avatar4321
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    Avatar4321 Diamond Member Gold Supporting Member

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    They are propping it up because of systemic risk. Basically we are all so interconnected, that if one goes down it starts a domino effect destroying all of us. See, we arent in nearly the good position our government is pretending to be in.

    We need to spit ourselves out of system.
     
  10. waltky
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    waltky Wise ol' monkey Supporting Member

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    Ron Paul spills the beans on Greek bailout...
    :eusa_eh:
    Paul: Bernanke Is Planning to Bail out Greece with U.S. Dollars
    February 13, 2012 – GOP presidential candidate Ron Paul, speaking on the heels of a defeat in the Maine GOP primary, said Federal Reserve Chairman Ben Bernanke is planning to bail out Greece.
    See also:

    Obama to unveil budget with higher taxes, more deficits
    Friday, February 10, 2012 President Obama will release an election-year federal budget Monday that is loaded with deficit spending and tax increases on the wealthy but avoids tough choices on the soaring costs of entitlements, independent analysts and Republican lawmakers say.
     

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