Merkel says EU bailout fund would halt speculators The Associated Press - Robert Wiel

Discussion in 'Economy' started by Neubarth, Mar 9, 2010.

  1. Neubarth
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    Neubarth At the Ballpark July 30th

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    Merkel says EU bailout fund would halt speculators
    The Associated Press - Robert Wielaard - ‎36 minutes ago‎
    LUXEMBOURG - German Chancellor Angela Merkel said Tuesday that a European monetary fund to bail out eurozone nations in need would send a clear signal to markets speculating on the possible break-up of Europe's currency union.
    ^^^^^^^^^^^^^^^^^^^^^

    Fact remains that a European Monetary Fund could be driven into bankruptcy by Goldman Sachs. They are smiling on the sidelines and waiting with glee for the opportunity.
     
  2. Neubarth
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    Neubarth At the Ballpark July 30th

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    The Greek PM is smart enough to know what the real threat is.


    Greek PM to urge Barack Obama to crack down on speculators
    The Guardian - ‎25 minutes ago‎
    Greece's prime minister George Papandreou says people are not allowed to buy fire insurance on a neighbour's house and then burn it down.
    GLOBAL MARKETS: European Stocks Edge Lower, Euro Weak Wall Street Journal
     
  3. editec
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    editec Mr. Forgot-it-All

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    There is some argument that NAKED dereivatives speculation on whether Greece will be able to meeet its obligations is making it more difficult for Greece to refinance its debt.

    But I cannot understand the financial mechanics of how that happens.

    Anybody here have a clue about that?

    And while I'm at it, let me tell you how pleased I am to be someplace where I can ask that question, because I know that there are people here whose understanding of the day to day mechanics of our financial world are vastly superior to mine.
     
  4. sparky
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    sparky VIP Member

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    I'm curious as well, i understand they've recruited some Goldman Sach exec , presumably to kick those derivatives around. But the Dracma's position of valuation to the EU is hard to understand. To me it reads like the state of Texas here declaring bankrupcy, and the rest of the states dictating to it how it would do so.....
     
  5. Toro
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    Toro Diamond Member

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    Nobody in Europe is being driven bankrupt by Goldman Sachs. The government of Greece approached Goldman to do an interest rate swap to hide the amount of debt reported so they could meet the criteria for entry into the euro. Many countries have used such swaps, and they were written by other investment banks.

    Blaming speculators is pure bullshit. The government of Greece is responsible for its own mess. They are the ones who ran up a deficit of 13% and a debt of 100% to GDP. That is nobody's fault except their own.
     
  6. Toro
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    Toro Diamond Member

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    CDS on Greek debt is $9 billion. Total outstanding tradable Greek debt is $260 billion. Spreads blew out not because of CDS but because investors began dumping Greek bonds. Blaming the CDS market is a convenient scapegoat for venal and incompetent politicians.
     
  7. sparky
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    sparky VIP Member

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    slow it down please Toro, what is meant by spreads.......?
     
  8. Neubarth
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    Neubarth At the Ballpark July 30th

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    Toro you have become so messed up in the head defending the grossly corrupt status quo that you have lost respectability on this board. Goldman can buy and sell Greece five times over without batting an eye. Go back and rethink your statement.

    Investors do not sell bonds in a panic. Speculators do. Goldman feeds on panic and fear. I have seriously considered telling the upstate New York state militia that they should take out Goldman Sachs. We do not need their kind in this world.
     
    Last edited: Mar 9, 2010

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