Greek bail out & haircut for banks

Discussion in 'OT (OFF Topic) Forums' started by Palfrem, Oct 27, 2011.

  1. Palfrem

    Palfrem MB Enthusiast

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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?
     
  2. Dieselman

    Dieselman Banned

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

    Stratman MB Enthusiast

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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.
     
  4. crockers

    crockers MB Enthusiast

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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.
     
  5. grober

    grober MB Master

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  6. Red C220

    Red C220 MB Enthusiast

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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?
     
  7. neilrr

    neilrr MB Enthusiast

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  8. OP
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    Palfrem

    Palfrem MB Enthusiast

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    I wonder how much of this money actually "exists"?
     
  9. davethemus

    davethemus Active Member

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

    it was the government!
     
  10. nick mercedes

    nick mercedes MB Enthusiast

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    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)
     
  11. John

    John Hardcore MB Enthusiast

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    I imagine someone is writing a couple of random numbers with lots of noughts on bits of paper.
     
  12. w124nut

    w124nut Active Member

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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.
     
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  13. davethemus

    davethemus Active Member

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

    are you out for the weekend?
     
  14. Red C220

    Red C220 MB Enthusiast

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    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.
     
  15. crockers

    crockers MB Enthusiast

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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 ?
     
  16. Dryce

    Dryce MB Enthusiast

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    I don't think that outcome is anything but deferred by a year or two.

    Greece is going to struggle even after the haircut.
     
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  17. st13phil

    st13phil MB Enthusiast

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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…
     
  18. OP
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    Palfrem

    Palfrem MB Enthusiast

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    ...and today bank shares have fallen.

    What has changed since yesterday then?
     
  19. davethemus

    davethemus Active Member

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    I imagine they would de-value there currency and inflate they're way out of debt. it's the only real option.
     
  20. OP
    OP
    Palfrem

    Palfrem MB Enthusiast

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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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