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EU official: banks agree 50 pct cut on Greek debt
Yahoo ^ | 10/26/11 | Don Melvin and Gabriele Steinhauer - AP

Posted on 10/26/2011 7:18:01 PM PDT by NormsRevenge

BRUSSELS (AP) — Private investors agreed Thursday morning to accept losses of 50 percent on their Greek bonds, a European Union official said, removing the last apparent roadblock to a broad plan to solve the continent's debt crisis.

The deal with private creditors would significantly cut Greece's debt load, the very problem that kicked off the eurozone's debt drama almost two years ago.

At an emergency summit in Brussels, European leaders had already agreed to force banks to raise euro106 billion ($148 billion) by June — partially to ensure they could weather the expected losses on Greek debt.

They also neared agreement on boosting the firepower of the continent's bailout fund to around euro1 trillion ($1.4 trillion) to help it protect larger economies like Italy and Spain from the sort of market pressures that pushed Greece to need a rescue.

While the breakthrough on Greece, the bailout fund and strengthening the banks was a big success for the eurozone, much of the effectiveness of the plans will depend on the details, which will have to be finalized in the coming days and weeks.

(Excerpt) Read more at news.yahoo.com ...


TOPICS: Business/Economy; Foreign Affairs; Front Page News; Government
KEYWORDS: banks; debt; eurozone; greece; greek

1 posted on 10/26/2011 7:18:02 PM PDT by NormsRevenge
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To: NormsRevenge

2 posted on 10/26/2011 7:20:05 PM PDT by ClearCase_guy (I won't vote for Romney. I won't vote for Perry.)
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To: ClearCase_guy

That picture said more than I could.


3 posted on 10/26/2011 7:21:52 PM PDT by RKBA Democrat (REWARD!! Return escaped conservatives to the Grand Ol' Plantation. Call and ask for Mitt or Rick)
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To: ClearCase_guy

Heh. ****’s on fire, yo.

Making private investors take a 50 percent cut on greek bonds? I wonder what that’s going to do to their borrowing rates.


4 posted on 10/26/2011 7:24:00 PM PDT by BenKenobi (Honkeys for Herman! 10 percent is enough for God; 9 percent is enough for government)
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To: BenKenobi
I wonder what that’s going to do to their borrowing rates.

Triple them at least, I expect.

5 posted on 10/26/2011 7:25:57 PM PDT by Lurker (The avalanche has begun. The pebbles no longer have a vote.)
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To: NormsRevenge
EU official: banks agree 50 pct cut on Greek debt

...obama to take credit.

6 posted on 10/26/2011 7:27:25 PM PDT by the invisib1e hand (...then they came for the guitars, and we kicked their sorry faggot asses into the dust)
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To: Lurker

That should really help their plight. :)

Why do things by half? If you’re going to default, why not go on a massive buying spree and then default everything?


7 posted on 10/26/2011 7:29:16 PM PDT by BenKenobi (Honkeys for Herman! 10 percent is enough for God; 9 percent is enough for government)
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To: Lurker

That should really help their plight. :)

Why do things by half? If you’re going to default, why not go on a massive buying spree and then default everything?


8 posted on 10/26/2011 7:30:55 PM PDT by BenKenobi (Honkeys for Herman! 10 percent is enough for God; 9 percent is enough for government)
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To: BenKenobi
why not go on a massive buying spree and then default everything?

The buying spree part is happening right now. Default will inevitably come later.

9 posted on 10/26/2011 7:32:06 PM PDT by Lurker (The avalanche has begun. The pebbles no longer have a vote.)
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To: ClearCase_guy
absolutely God damn right....
10 posted on 10/26/2011 7:33:09 PM PDT by Chode (American Hedonist - *DTOM* -ww- NO Pity for the LAZY)
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To: NormsRevenge

postponing the inevitable...... =.=


11 posted on 10/26/2011 7:34:43 PM PDT by cranked
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To: NormsRevenge
Private investors agreed Thursday morning to accept losses of 50 percent on their Greek bonds

It's going to be fun figuring out how they were induced to do that -- that is, via what back-end channels they're going to be taken care of, because they will be.

Faustian-Bargain alert.

12 posted on 10/26/2011 7:34:49 PM PDT by the invisib1e hand (...then they came for the guitars, and we kicked their sorry faggot asses into the dust)
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To: NormsRevenge

Yeh, that oughta teach those Greeks to be fiscally responsible.


13 posted on 10/26/2011 7:39:19 PM PDT by windsorknot
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To: NormsRevenge

Watch out for flying PIIGS. Banks are not going to take a 50% hit without getting something from the taxpayers... just ain’t going to happen.


14 posted on 10/26/2011 7:41:13 PM PDT by RetiredTexasVet (There's a pill for just about everything ... except stupid!)
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To: NormsRevenge

This is going to solve nothing. None of the fundamentals have changed. None.

If Greece can’t operate in the black right now, then that means it has to borrow. How many eager lenders will there be?

This is like stiffing your creditors for 50% then taking a home consolidation loan and not changing your income or spending. Not a perfect analogy, but close enough.


15 posted on 10/26/2011 7:54:13 PM PDT by ChildOfThe60s ( If you can remember the 60s....you weren't really there)
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To: NormsRevenge

I’m really having a hard time keeping up with every meltdown.

Didn’t they just sell some Greek bonds a few months ago @90% rates (because nobody wanted the damn things) and now a half off haircut plus the issuing of more bonds?

Did anyone tell Euroland that when kicking the can down the road a big wall exists on that dead-end road?


16 posted on 10/26/2011 7:56:36 PM PDT by Razzz42
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To: NormsRevenge

The investors shouldn’t get anything. They all knew that Greece wasn’t a good risk. That’s why Greece needed to borrow over and over in the first place.


17 posted on 10/26/2011 9:00:31 PM PDT by freedomfiter2 (Brutal acts of commission and yawning acts of omission both strengthen the hand of the devil.)
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To: NormsRevenge
Private investors agreed Thursday morning to accept losses of 50 percent on their Greek bonds, a European Union official said, removing the last apparent roadblock to a broad plan to solve the continent's debt crisis.

This is lunacy. What about the bonds the Greeks issue next week? Or the week after? Or the week after that? Has Greece balanced its national budget? Has Greece stopped deficit spending? NO! 50% haircut and the next day they are back to wracking up the deficit and borrowing more money from the same fools... Europe is a joke...

18 posted on 10/26/2011 10:02:05 PM PDT by April Lexington (Study the Constitution so you know what they are taking away!)
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To: NormsRevenge
While the breakthrough on Greece, the bailout fund and strengthening the banks was a big success for the eurozone, much of the effectiveness of the plans will depend on the details, which will have to be finalized in the coming days and weeks.

PFHHHHT!

19 posted on 10/26/2011 10:03:55 PM PDT by April Lexington (Study the Constitution so you know what they are taking away!)
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To: April Lexington

*


20 posted on 10/26/2011 10:52:33 PM PDT by Beaten Valve
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To: BenKenobi
Why do things by half? If you’re going to default, why not go on a massive buying spree and then default everything?

It doesn't really matter. Greece will be in this same situation less than a year from now. This is the slow train ticket. Unless Greece takes direct REAL actions to resolve their SPENDING, this will not help.

This is like the folks who come to the office to get out of debt using a HELOC and then don't cut up their credit cards. We roll them over to a much lower interest rate, negotiate to get the interest on the debt reduced or forgiven, and then they keep using the credit card.

The US mentality isn't any different.

21 posted on 10/27/2011 4:10:15 AM PDT by EBH (God Humbles Nations, Leaders, and Peoples before He uses them for His Purpose)
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To: RetiredTexasVet

Both Spain and Italy are increasing government revenues and improving budget deficit forecasts this year. Italy (whose public debt issue comes from the 1980s) will end 2011 with a budget deficit close to 3.5%. While Greece is not able to put its deficit under control. I´m sick to see how the media puts all these countries together in the same category. I´m sick of the racist acronym PIGS or Club Med. They are all struggling countries, of course, but very different. There are single italian and spanish provinces that export more than Greece or Portugal.


22 posted on 10/27/2011 4:39:55 AM PDT by Euroconservative
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