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 ...
That picture said more than I could.
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.
Triple them at least, I expect.
...obama to take credit.
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?
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?
The buying spree part is happening right now. Default will inevitably come later.
absolutely God damn right....
postponing the inevitable...... =.=
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.
Yeh, that oughta teach those Greeks to be fiscally responsible.
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.
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.
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?
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.
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...
PFHHHHT!
*
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