Greek bail out & haircut for banks

Palfrem

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Ok,

The banks have just had to write off 50% of the debt they hold for the bone idle, workshy, tax dodging Greeks.

How come their shares have rocketed today then please, anyone?
 

Dieselman

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Because a 50% loss of profit is better than a 90% loss...
 

Stratman

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Because the day before yesterday Greek government bonds were trading at 40% of their face value. Now the banks will get 50% instead.
 

crockers

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Could be because UK banks aren't holding much Greek paper. Think the big losers are French hence the need for recapitalization over there.
 

Red C220

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I'll be calling LloydsTSB in the morning to find out if they'll consider me an honorary "bubble" for the purposes of my outstanding borrowing.

Zorba dance anyone?
 

davethemus

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do you understand it wasn't the greek people that borrowed this money?

it was the government!
 

nick mercedes

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How come their shares have rocketed today then please, anyone?
Because we're all pretending that everything is rosy.

Give it a couple of weeks for the next eurozone crisis.

(not that our economy is anything more than a hollowed out shell sponsored by debt)
 

w124nut

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do you understand it wasn't the greek people that borrowed this money?

it was the government!
Correction: It was the Greek people and their government who caused their debt. The Greek people were universally infamous for not paying their taxes and over paying themselves large salaries and the Greek government were corrupt in falsifying their economic situation to join the euro.

Under duress, you, a bank lend the Greek government xx billion euros only to be informed within a short while that you are not getting all your money back. Tell your bank that you are not going to repay all the personal loan/mortgage money you owe them!!! ...and see what their answer is.

Greece should not have gone into "europe". There are more countries that europe should not have invited into their club. France and Germany were irresponsible in wanting to lead a large united states of europe. Now they will suffer as will the rest of us.
 

davethemus

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Correction: It was the Greek people and their government who caused their debt. The Greek people were universally infamous for not paying their taxes and over paying themselves large salaries and the Greek government were corrupt in falsifying their economic situation to join the euro.

Under duress, you, a bank lend the Greek government xx billion euros only to be informed within a short while that you are not getting all your money back. Tell your bank that you are not going to repay all the personal loan/mortgage money you owe them!!! ...and see what their answer is.

Greece should not have gone into "europe". There are more countries that europe should not have invited into their club. France and Germany were irresponsible in wanting to lead a large united states of europe. Now they will suffer as will the rest of us.

i see, the banks where ''under duress'' to loan money to greece.

are you out for the weekend?
 

Red C220

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i see, the banks where ''under duress'' to loan money to greece.
Effectively they were under a form of duress, the opposite of lending them more being far more unpalatable (the country leaving the Euro and going bankrupt).

Unfortunately Greece have been using Lester Piggott to do their accounting for decades. So having got thier hands on the "bailout" then discovered it just wasn't enough, by quite a large margin.
 

crockers

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So what do you see as the outcome if Greece had to withdraw from the Euro and issue their own Drachma again ?
 

Dryce

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So what do you see as the outcome if Greece had to withdraw from the Euro and issue their own Drachma again ?
I don't think that outcome is anything but deferred by a year or two.

Greece is going to struggle even after the haircut.
 

st13phil

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The Euro is a classic EU fudge. Kohl new darn well that a common currency across such disparate economies would never work so, in his view, it would drive closer political and economic union. The trouble is, it hasn't quite panned out like that and the repeated application of sticking plasters over the problem haven't and won't work.

It'll all end in tears…
 

davethemus

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So what do you see as the outcome if Greece had to withdraw from the Euro and issue their own Drachma again ?
I imagine they would de-value there currency and inflate they're way out of debt. it's the only real option.
 
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Palfrem

Palfrem

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I hope Greece goes back to the Drachma.

I still have 2000 left over from a holiday.
 

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