Posted on 10/27/2011 10:09:01 AM PDT by risen_feenix
"A nominal haircut of 50 percent has been agreed. On the basis of this, we will have a new programme for Greece with a value of 100 billion euros."
She said the public sector would make a further 30 billion euro contribution towards private sector participation.
(Excerpt) Read more at reuters.com ...
investors already had calculated this cut.
They were afraid of the 60% as it was not in their formulas.
The bondholders make a profit even at 10%.
either way the eu is screwed.
at some point soon the euro is going to drop via collapse or via inflation.
If 5 million people out of those 11 million don't work but draw $100K/yr in entitlements then this alone will cost the government 500 billion per year.
Wake up if you think these “private” bondholders are actually, “private,” taking this “voluntary” cut.
This PHONEY debt deal jacked the “stability” fund over 100% to a trillion. DE_STABILIZES commodities... look at the price of oil today up close to 4.00 and approaching 100. Gold up also.
This is FREE govt. pension and benefit money with NO cutbacks for any of these govt.s. The worldwide flood of dollars + euros controlled by fascio-marxism will lead to it will be decreed that “all the world will be taxed.” The Chinese will not bite on phoney paper called “vehicles.” They have huge $ reserves already and want hard assets only.
I think Spain and Italy are the two largest southern European countries as far as debt goes too.
Well they had no choice unless they wanted a 100% haircut if Greece and the other two tumble. I’m certain it was presented as a means of “saving” half their investment they might otherwise loose.
Unless the southern countries get their acts together, which was the concern when they merged under the Ero in the first place, then this will keep repeating itself again and again. Leadership is pretty bad in most and an overall unconcern for their countries in the long term.
I agree...rather like those who borrowed money for homes here in the states who knew they did not have the means to pay the debt....and even still Obama seeks to bail them out of their responsibility while those who have maintained their morgages watch as their homes depreciate.
Greece, Spain and Italy are doing the same thing...waiting for the financial "saviors".
The only way the Euro continues is if the Germans continue to pay for it. Why should they?
The banks will lose 50% of the money they invested into bonds to bail Greece out, and will borrow more money to cover their loss. Greece, having been forgiven 50% of their debt, will now be able to borrow more money to continue paying on their remaining debt, even though once this deal is approved they will technically be in default. To make a long story short, none of the problems have been solved, Europe is going to borrow more money, and all they've really done is kick the can further down the road.
And, only 402,0000 jobs were lost in the US this week.
About the only good news we saw today was the GDP rose to an annual rate of 2.4% a year. The question is, 2.4% from what? Stuff paid for with borrowed foreign dollars to cover unemployment benefits and "stimulus" jobs?
And based on all of this good news, the DOW shot up 300 points.
What am I missing?
No, they will start another riot in Athens because these terms are "Draconian." Even surrender is not generous enough for those hooligans.
Come to think of it, we have hooligans here too....
what would happen if the euro simply vanished?
imagine the fortunes and “empires” which would crumble.
It will not happen because too many rich and connected people are vested in keeping the euro alive....for now.
Plus the underlying problem hasn’t been addressed yet either. All this does is kick the can down the road.
The taxpayers will pay the other 50% one way or another. They just won’t know that they are doing it.
As per the Government the GDP increased by 2.4 for the quarter, but realistically it will be adjusted down to .7 or .8 in a week or so. Add in real inflation and you have a minus GDP for the year. The 402,000 first time unemployment claims is fake and even at that level it is disastrous. It will be adjusted upward quietly in a week. The DOW rose 300 points because the casino willed it so. It was and hasn’t been based on a true reflection of reality for years. The 505 reduction of Greek debt as a positive measure to solve the PIIGS debt problem is absolute nonsense.
Bill Klintoon was good at significant haircuts.
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