Greece To Plead Pennilessness?

[Peetr]

Greece To Plead Pennilessness?

Pure FX
19.04.2011

The euro has come down a notch in the last 24 hours following a series of nail-biting releases.

First of all reports have abounded that former Greek Prime Minister Costas Simitis told a newspaper that Greece could soon default i.e. plead pennilessness to the IMF and ECB to whom Greece owes billions.

This follows rocket-fuelled rises in interest rates on Greek bonds in recent weeks.

More...

 

[intradaybill]

Greece is in a better shape than England or even America.

 

[gamma]

Greece is in a better shape than England or even America.

Please explain why you say so.

 

[intradaybill]

I will try. The media are focussing on Greece and Portugal but the debt of those countries is tiny compared to the debt of US, England, France and Italy, for example. Even if these countries pay nothing or are forced to sell land, you know for example Greece has many islands which they can lease to repay, this will not affect global economy. However, the huge debt of those other countries is a real problem. If US for example tries to reply through currency depreciation, the effect on what you pay for gas and groceries will be dramatic.

Just forget about Greece, and the PIIGS. The problem is elsewhere.

 

[dmt257]

I think situation is worse for the US and UK + the rest because the market will allow them to borrow for much longer than Greece. Therefore a larger issue is building.

It really does not make any sense that these guys continue to borrow us money. The only way larger Western economies can pay their existing creditors is by borrowing even more money. Is that not called a Ponzi scheme.....paying existing clients with the money of the new?

When the music finally stops there will be alot of debt holders out of pocket, whether by default, devaluation or whatever. Nearly everyone will be dumbstruck yet again when the latest bubble bursts. Its amazing how quickly the dot-com and housing disasters are forgotton.

 

[Splitlink]

I think situation is worse for the US and UK + the rest because the market will allow them to borrow for much longer than Greece. Therefore a larger issue is building.

It really does not make any sense that these guys continue to borrow us money. The only way larger Western economies can pay their existing creditors is by borrowing even more money. Is that not called a Ponzi scheme.....paying existing clients with the money of the new?

When the music finally stops there will be alot of debt holders out of pocket, whether by default, devaluation or whatever. Nearly everyone will be dumbstruck yet again when the latest bubble bursts. Its amazing how quickly the dot-com and housing disasters are forgotton.

I hope that we are not worse than Greece but, fundamentally, I agree with you. In addition, we are spending millions (or billions) on a war in Libya that we, really, cannot afford while, at the same time, cutting back on defence, health, education and police.

Spain has been given stick for not helping in Libya. Spain cannot afford it. Cameron should get his priorities in order.