When Greece is trying to reach a deal with private sector creditors that would pave the way for additional bailout funding. S&P confirming even after the deal Greece “in all likelihood” qualify as a default.
IMF warned yesterday and reduced its forecast growth for the world 2012 amid concerns with the European Crisis and the IMF chairman confirmed that the debt crisis in Europe is the biggest threat, Christine Lagarde also pointed to the challenges facing the U.S. economy.
Yesterday the talks fall apart and Greece is stuck with Troika (EU/ECB/IMF) on the one hand and Bondholders on the other.So here Greece acting as an intermediary( reference entity) where the Bond holders demanding 4% coupon on the restructured debt that is not acceptable by the Troika.
Things falling apart from the last days turning deja vu of Argentina, . Where I had a lot of optimism that we were not going the way of Argentina, we seem to be going that way.
It seems the difficult negotiating process could be a “reflection of the advisers,” referring to Cleary Gottlieb, the same law firm that represented Argentina during its 2002 default and continues to defend the country against investors who still seek payment on their debt
Everybody involved in this (need to) do a serious gut check – the Greeks, the Europeans, the banks and the funds.
the best thing the Greeks could do is stay in the Eurozone but leave the Euro and begin to print its own money again…..pay back the debts with Drachmas no matter how much they are worth….at least they will be pegged to the REAL VALUE of its Economy and not by the standards of Europe’s more industrialized economies like Germany…..Trying to live on an Artificial Standard that is imposed from outside is ludicrous…..and very hurtful to the many for the sake of a few who benefit…..Greece can lead the way out of the mess of DEBT and Financial Predation which now threatens the Stability of the World Communities Future……that is my two cents worth
I am wondering If Greek leaves the Euro zone , Spain and Portugal will follow the bandwagon and it may led to collapse of Euro, that means the biggest ever economic crisis for the world and severe years of recession ..
When you’re in a jam between two warring and inflexible parties, sometimes you just have to do the only thing you can do. Greece should simply stop making any payments on their bonds. Their current good behavior is getting them nothing, so why not just overturn the table?
Yes, this will lead to an immediate default, but so what? That’s being imposed upon them anyway.
And yes, the suffering of the Greek people will increase, but that’s going to happen anyway too.
And yes, Greece will become a pariah state and nobody will ever lend to them again (or for five years, whichever comes first). In the meantime, the government’s budget will be roughly balanced.
So went Argentina. It was terrible, but probably better than any alternative.
I like you attitude and views towards Greece trying to show good behavior .. in fact its a good approach to get default and the whole economy should re-begin,
With the example of Greek default we can see that Europe trying to build a strong union faced problems caused by this. Sure, the default in one country has an impact on markets all over the world but those who suffer most of all are countries which are in close relationships with Greece. The only hope now is for EFSF which can stabilize the situation.
Bondholders have the right to demand their money and nobody knows what measures can be taken if Greece stops paying.
I think that Europian Union will not let Greece leave Eurozone. And what will Greece do after that? A lot depends on the Greek government and their outlook on this problem. Anyway, I think they will be afraid of implementing radical actions.
Exactly the problem lies more with in the political will. Its very important that the political leaders should really have the will to come out from this economic fiasco
I guess they have will but ways of recovering are different. In this case all methods of fighting the crisis hurt Greek people. The problem also lies in the crisis spreading on other countries. If there was no such effect, nobody would lend Greece money and nobody would care about them at all. European countries try to help Greece because they are afraid of getting infected with their disease.
The Government of Greece can not act independently today, all interests must be taken into account but Greek people will suffer a lot. Politicians must have good accounts in banks but mainstream people….I’m really sorry… that’s all what i can say.
Exactly Its more like contagion, it has to be a collaborative efforts of all the Euro nations where Germany and france should take the lead http://wp.me/pc3rd-dr
But the worse is yet to come. Symptoms of a strong undercurrent is showing its vibrations in the top of the fragile economies, world wide.
Whatever be the top brass quote, or press-release or project or prophesy, the FALL is immediate, if not tomorrow.
For all the past several years, ALL the global ‘ financial worriors’ were building up the ladder/stairway to the heavens…
Now, what Greece is telling, US is not understanding…
What EU is delcaring is not accepted by the rest…
Now is the time…
Be watchful. There is no scanner to check, when the FALL is going to take place.
Those who wants to know, let them know.
Because, none will be there, THEN, WHEN THE FALL commences, to comment on that FALL !
Yep Tony the problem is every body talking so much negative, that the efforts to save the euro zone seems fragile. . And the contagian is growing like any thing