Greece may exit the Euro ?

[hhiusa]

Greece is not an important support for euro, they are not a strong economy and their weight on the eurozone is meanningless, but it would be shocking at the investors eyes, it could mean many things and none of those is good, but it woulnt also be the end of the euro, Germany, France and Italy can support it, the rest of the european economies are not strong enough as to finish with that corrency

I think the EU will and can survive without Greece as you say.

 

[hhiusa]

I think they can, but it's certainly not positive news ... something is sketchy there...

Your image did not embed properly. I think it will teach other weak nations on the brink like Spain and Portugal a good lesson. Send a future precedent, "dont spend yourself into oblivion and expect someone else to pick up the bill".

 

[Pat494]

Politicians MUST NOT just waste their country's assets with reckless spending.
And if they do they shouldn't be allowed to just walk away without punishment or it will keep happening imho.

 

[Atilla]

Politicians MUST NOT just waste their country's assets with reckless spending.
And if they do they shouldn't be allowed to just walk away without punishment or it will keep happening imho.

Another false view is that infrastructure investment and the olympics - will somehow continue forever perception. The investment and capital flows that come into a country in building up infrastructure and jobs and salaries is a one off hit. Moreover, because the economy is small the impact of this investment was that much greater.

Unlike investment in manufacturing or productive capacity, which is likely to have 5-10-20 year output, buildings only have one off hit with a multiplier but it doesn't last. It's a kick start.

When people say the economy contracted - well ofcourse it will because now you have a building what are you going to do with it?

Sadly, the UK is in a similar position but we are lucky to have supply shortage with a growing population and a much bigger economy.

China is about to face a similar dilemma with their building bubble.


I reckon the whole global economy needs re-rating and a bloody good adjustment bureau. Instead we get politicians.

 

[new_trader]

I reckon the whole global economy needs re-rating and a bloody good adjustment bureau. Instead we get politicians.

"The global economy would be better if politicians weren't heavily involved in the allocation of societies resources." said the socialist.

 

[Pat494]

Another false view is that infrastructure investment and the olympics - will somehow continue forever perception. The investment and capital flows that come into a country in building up infrastructure and jobs and salaries is a one off hit. Moreover, because the economy is small the impact of this investment was that much greater.

Unlike investment in manufacturing or productive capacity, which is likely to have 5-10-20 year output, buildings only have one off hit with a multiplier but it doesn't last. It's a kick start.

When people say the economy contracted - well ofcourse it will because now you have a building what are you going to do with it?

Sadly, the UK is in a similar position but we are lucky to have supply shortage with a growing population and a much bigger economy.

China is about to face a similar dilemma with their building bubble.


I reckon the whole global economy needs re-rating and a bloody good adjustment bureau. Instead we get politicians.

And that is why the flood of immigrants beyond the EU was let in so that the building industry had lots of work building new houses, but not all at once. This is a basic kick-starter to the rest of a bloated economy.

The alternative to the present politicians are bureaucrats who just get on with building a decent society on a steady incomes. Not a lying, thieving politician in sight - bliss.

 

[Atilla]

And that is why the flood of immigrants beyond the EU was let in so that the building industry had lots of work building new houses, but not all at once. This is a basic kick-starter to the rest of a bloated economy.

The alternative to the present politicians are bureaucrats who just get on with building a decent society on a steady incomes. Not a lying, thieving politician in sight - bliss.

Don't forget impending pension time bomb and declining birth rates.

However, regarding re-rating I was referring to equities, earnings and valuations coupled with negative to zero interest rates which are now having a detrimental effect on the money markets.

Some seem to have interpreted this as me being a socialist. :smart:

I'd like to object mi lord.

 

[2be]

Don't forget impending pension time bomb and declining birth rates.

However, regarding re-rating I was referring to equities, earnings and valuations coupled with negative to zero interest rates which are now having a detrimental effect on the money markets.

Some seem to have interpreted this as me being a socialist. :smart:

I'd like to object mi lord.

lets all retire Greek style at 50:clap::clover::idea:

 

[hhiusa]

Don't forget impending pension time bomb and declining birth rates.

However, regarding re-rating I was referring to equities, earnings and valuations coupled with negative to zero interest rates which are now having a detrimental effect on the money markets.

Some seem to have interpreted this as me being a socialist.

I'd like to object mi lord.

Did your country make the list
http://blog.peerform.com/top-ten-most-socialist-countries-in-the-world/

The UK's return to socialism
http://fee.org/freeman/detail/the-uks-return-to-socialism

http://www.dailymail.co.uk/news/article-3074207/Suicide-socialism-Labour-learn-lesson-history-British-people-don-l-like-hectoring-left-wing-politicians-telling-run-lives.html

 

[hhiusa]

lets all retire Greek style at 50:clap::clover::idea:

That is if they don't go broke first.

 

[pistol99]

The EU is a house of cards, and Greece is a testament to this.

Eventually, the project will disintegrate.

I just wish I could work out a way to profit heavily from it.

 

[Pat494]

While we are oohing and aaaring about the feckless performance of the Greeks, there is another much mightier country with astronomical debts of $17 trillion.
Just as incompetent and we may well get the chief culprit's brother as a Presidential candidate.

The world's finances are indeed in a sorry state. The criminals who caused this trouble go free and anyone who dares mention it are dubbed anti American.

They still owe a mountain of debts from 1776 too !

 

[Atilla]

While we are oohing and aaaring about the feckless performance of the Greeks, there is another much mightier country with astronomical debts of $17 trillion.
Just as incompetent and we may well get the chief culprit's brother as a Presidential candidate.

The world's finances are indeed in a sorry state. The criminals who caused this trouble go free and anyone who dares mention it are dubbed anti American.

Approx 8-12 trillion of that went to the Iraq war.

Gains from Iraq went to private companies and COE's.

 

[Pat494]

Approx 8-12 trillion of that went to the Iraq war.

Gains from Iraq went to private companies and COE's.

Complete waste of money on sub standard buildings and a military that ran away at the first shot. Now Isl have lots of modern weapons - nice one guys !!

 

[hhiusa]

Complete waste of money on sub standard buildings and a military that ran away at the first shot. Now Isl have lots of modern weapons - nice one guys !!

They have so much debt because the rest of the world's economies are based upon the US economy. It wouldn't matter if it was a $100 trillion, countries will continue to buy US debt. The US will print more money and no one will do anything about it. Besides, the euro and the pound may be up a little but they are long ways from where they were. Within the last year, their currencies have dropped 20%. That means the US buying power increased 20% in Europe. All the money that you have in the bank is now worth less or more likely "worthless".

2008-2015
It doesn't look like the GBP ever recovered from the 2008 recession.

 

[Pat494]

Well that is one way of dismissing it as irrelevant. A sort of " head in the sand approach ". Whatever next ? Crank up the PR machine, costing more billions, to portray it as a victory ? It won't fool anybody but themselves.

 

[hhiusa]

Well that is one way of dismissing it as irrelevant. A sort of " head in the sand approach ". Whatever next ? Crank up the PR machine, costing more billions, to portray it as a victory ? It won't fool anybody but themselves.

It was as I said there is no need to portray it as it a victory. America's debt may be high but not so in terms of GDP to debt ratio. I'd say they are doing fine as their GNP is 6x the UK's, 4x Germany's and only a $1 trillion of the entire European Union. No wonder the south of Europe hasn't recovered, Germany is carrying all of your dead weight.

https://research.stlouisfed.org/fred2/series/GFDEGDQ188S

 

[hhiusa]

Greece has edged closer to default and possible exit from the eurozone after opting to postpone its 300 million euro ($337 million) payment to the International Monetary Fund. I don't think it will be a total disaster though. Most of the debt is no longer privately held. There isn't just one bank holding title to the debt. There are many holders to the debt.

 

[Pat494]

Anybody lending them any more money must be barmy.

 

[fayalac]

If greece leaves the eurozone, it would put the euro to shake for a while, but the euro would survive....., greece is just a small economy and it has caused more troubles to the eurozone than the support it has meant so far