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Ardent Listener
Administrator
USA
4841 Posts |
 Posted - 04/25/2010 : 15:00:08
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From The Sunday Times April 25, 2010
Greek meltdown in danger of spreading
David Smith and Iain Dey GERMANY, France and the International Monetary Fund (IMF) must act quickly to bail out Greece to prevent a slide in confidence in financial markets, Alistair Darling said yesterday.
“It’s absolutely imperative that the IMF, the euro group and Greece sort this out,” said the chancellor, attending the spring meetings of the IMF and World Bank in Washington.
Eurozone governments and the IMF are preparing a €45 billion (£39 billion) loan package for Greece after market concerns about its ability to meet its financial commitments.
Treasury sources say privately that politicians and officials have sent mixed messages on the support package, which has made a difficult situation worse. Until a few days ago Angela Merkel, the German chancellor, was insisting Greece could get by without assistance. IMF officials have been in Athens since Wednesday working on the rescue.
Related Links
Years of austerity for bailed-out Greece
Greece needs credibility as much as rescue cash
Darling’s view was echoed by Tim Geithner, the US Treasury secretary, who met George Papaconstantinou, the Greek finance minister, Dominique Strauss-Kahn, the IMF managing director, and several EU officials.
A US Treasury official said: “Secretary Geithner encouraged them to move quickly to put in place a package of strong reforms and substantial concrete financial support.”
A former IMF chief economist warned yesterday that Greece’s problems could spread. Simon Johnson said market reaction to the Greek deal suggested the eurozone’s problems are about to get worse.
The value of government bonds issued by Portugal, Spain and Ireland all fell in the wake of the deal, Johnson said. He warned that property prices across the eurozone could slump as a result of the bailout deal, raising fresh concern about the health of banks.
Meanwhile, Darling insisted that global agreement could still be reached on new taxes to rein in the banks, despite a mixed reception to proposals put forward by the IMF.
Darling said there was work to be done before G20 leaders meet in Canada in June and that it was important that all countries act together in levying taxes on the banks. “If you allow people to shop around and go to the least inconvenient jurisdiction, it won’t work. But that doesn’t mean you have to have a universal levy that applies in exactly the same way in every country,” he said.
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Think positive. |
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dakota1955
1000+ Penny Miser Member
2212 Posts |
Posted - 04/25/2010 : 16:24:47
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| Greece first and our time is coming also. |
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metalmoney.ca
Penny Pincher Member
Canada
223 Posts |
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PennySaved
1000+ Penny Miser Member
USA
1720 Posts |
Posted - 04/27/2010 : 11:35:41
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I've been watching CNBC. Last week a 10 year Greek bond was 8%; this AM it was up a little over 15%.
How much worse do you think it will get? |
SELLING COPPER PENNIES 1.4X FACE SHIPPED......“I sincerely believe that banking establishments are more dangerous than standing armies, and that the principles of spending money to be paid by posterity, under the name of funding, is but swindling futurity on a large scale” Thomas Jefferson |
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PennySaved
1000+ Penny Miser Member
USA
1720 Posts |
Posted - 04/27/2010 : 11:37:10
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| Would any of you even touch a Greek 10 year bond? 15% is tempting but what are the chances you would lose all your money? I have to admit I don't know a lot about bond markets. |
SELLING COPPER PENNIES 1.4X FACE SHIPPED......“I sincerely believe that banking establishments are more dangerous than standing armies, and that the principles of spending money to be paid by posterity, under the name of funding, is but swindling futurity on a large scale” Thomas Jefferson |
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El Dee
Penny Hoarding Member
USA
547 Posts |
Posted - 04/28/2010 : 09:38:17
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The interest rate is a reflection of the risk. The buyer is knowingly trading the risk of default against the reward of 15% interest and an appreciation in the bond principal.
You'd buy a Greek bond in anticipation of a bailout. If they get bailed out, the bond principal will soar, as there is no longer any substantial risk.
I'd say the risk of a default is VERY high, you don't see that kind rate anywhere else.
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Trust the government? Ask an Indian. |
Edited by - El Dee on 04/28/2010 09:39:59 |
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PennySaved
1000+ Penny Miser Member
USA
1720 Posts |
Posted - 04/28/2010 : 11:20:49
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| It is up over 17% now; wonder how high it will go |
SELLING COPPER PENNIES 1.4X FACE SHIPPED......“I sincerely believe that banking establishments are more dangerous than standing armies, and that the principles of spending money to be paid by posterity, under the name of funding, is but swindling futurity on a large scale” Thomas Jefferson |
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beauanderos
1000+ Penny Miser Member
USA
2408 Posts |
Posted - 04/28/2010 : 12:29:36
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quote:
Originally posted by El Dee
The interest rate is a reflection of the risk. The buyer is knowingly trading the risk of default against the reward of 15% interest and an appreciation in the bond principal.
You'd buy a Greek bond in anticipation of a bailout. If they get bailed out, the bond principal will soar, as there is no longer any substantial risk.
I'd say the risk of a default is VERY high, you don't see that kind rate anywhere else.
Bondholders could easily get screwed in the end, and Greece wouldn't help  As they've said since the time of Troy, "beware of Greeks bearing gifts"  |
Hoard now and hold on!
http://coppermillions.blogspot.com/
http://wherewillyoubein2012.blogspot.com/ |
Edited by - beauanderos on 04/28/2010 12:31:48 |
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Nickelless
Administrator
USA
5580 Posts |
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coppernickel
Penny Pincher Member
USA
131 Posts |
Posted - 04/28/2010 : 18:57:27
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For the sake of argument, how could we buy Greek bonds?
Put your money in a 401K and tell them to invest in Euro Bonds. |
Silver Monometalism is the most permanent and stable form of money the world has seen. Natural law and history prove silver value is best multiplied by gold and best divided by copper. It is only in this counterfeit currency time when the natural law appears suspended. |
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hobo finds
Penny Hoarding Member
838 Posts |
Posted - 04/28/2010 : 19:06:00
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quote:
Originally posted by beauanderos
quote:
Originally posted by El Dee
The interest rate is a reflection of the risk. The buyer is knowingly trading the risk of default against the reward of 15% interest and an appreciation in the bond principal.
You'd buy a Greek bond in anticipation of a bailout. If they get bailed out, the bond principal will soar, as there is no longer any substantial risk.
I'd say the risk of a default is VERY high, you don't see that kind rate anywhere else.
Bondholders could easily get screwed in the end, and Greece wouldn't help As they've said since the time of Troy, "beware of Greeks bearing gifts"
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metalmoney.ca
Penny Pincher Member
Canada
223 Posts |
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PennySaved
1000+ Penny Miser Member
USA
1720 Posts |
Posted - 05/04/2010 : 14:59:11
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quote:
Originally posted by metalmoney.ca
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web of debt.
Thanks for posting that chart. What a mess. Seems almost better to just start all over. |
SELLING COPPER PENNIES 1.4X FACE SHIPPED......“I sincerely believe that banking establishments are more dangerous than standing armies, and that the principles of spending money to be paid by posterity, under the name of funding, is but swindling futurity on a large scale” Thomas Jefferson |
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Greek meltdown in danger of spreading
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