What happens when Greece defaults

I don't quite get the bit about:
- Every bank in Greece will instantly go insolvent.
- The Greek government will nationalise every bank in Greece.
- The Greek government will forbid withdrawals from Greek banks.

If Greece default, then they are wiping the debt to other countries namely German and French banks off their balance sheet. It would mean the banks in Greece would be in a healthier shape no? The whole point of defaulting is getting rid of the debt. Although, it does mean Greece wont' be able to borrow any more for the future, defaulting would help their economy right now.
 
Last time I was there a couple of years ago it was just a pile of rubble with German tourists pocketing it.
 
Defaulting on national debt has a long and vibrant history. US has done it, so has the UK. More than once.


I agree with letting the chips fall where they may. Those that helped get Greece so strung out in the first place (Germany is the most culpable) should take it up the buttum when it all turns to shinola. Bods who don’t stop to wonder why they’re being offered mega-rate returns are either too stupid and/or too greedy to expect too much sympathy when they’re left with sod all.

Of course, the financial institutions who are not stupid, but extremely greedy (and clever, and corrupt and in league with the devil) and knew full well what would happen, and expected the German tax-payer (primarily) to cover their losses when (not if) it all turned Pete. Which of course it has and therefore they have and equally of course of course, which they will continue to do.

Touch of anarchy required or commonsense, whichever way you want to look at it.

Draw a line.

Start again.

It’ll be the same crowd back in control within a decade, but it have a nice clean, fresh start feel to it all.
 
Tell the creditors to get stuffed. Don't give them a penny. They deserve to lose the lot for lending to a country in such dire straights. If you are that dumb, you deserve to get burned.

If they can't borrow in the future, great! That is the BEST thing for any country. To be forced to live within your means is nothing but positive.
 
0007 said:
An interesting - and possibly quite realistic scenario here:

http://blogs.telegraph.co.uk/finance/andrewlilico/100010332/what-happens-when-greece-defaults/
Click to expand...


In federal Europe, not a lot. It'll just mean more pressure on the likes of Germany and the UK.

If you look at the way things are in Europe today, world war 2 was started for a lot less. The Germans must be getting really trigger happy, you know what they're like.

Mind you, no point invading Poland first this time, there's no f*cker there.
 
I really like the way this thread's going.

Sidi Bouzid and Tahrir Square probably started just as small....

Come on, let's bring the global eceonomy back to where it belongs - The Dark Ages.

I have a pig to offer. Who will bid me three chickens, a goat and pitcher of mead? We can either do an immediate and full barter, or if that's not convenient, I can allow for future delivery of one or more of the items, for a small premium...
 
TheBramble said:
I really like the way this thread's going.

Sidi Bouzid and Tahrir Square probably started just as small....

Come on, let's bring the global eceonomy back to where it belongs - The Dark Ages.

I have a pig to offer. Who will bid me three chickens, a goat and pitcher of mead? We can either do an immediate and full barter, or if that's not convenient, I can allow for future delivery of one or more of the items, for a small premium...
Click to expand...



If i was an eastern european i'd work a full week for that. (as a pro trader)
 
dmt257 said:
Tell the creditors to get stuffed. Don't give them a penny. They deserve to lose the lot for lending to a country in such dire straights. If you are that dumb, you deserve to get burned.

If they can't borrow in the future, great! That is the BEST thing for any country. To be forced to live within your means is nothing but positive.
Click to expand...

I completely agree! In this age of credit there is nowhere to go but default. Take away the borrowing and you will see temporary turmoil and long term stability.

BTW Hello everybody. I am indeed new.
 
TheBramble said:
I really like the way this thread's going.

Sidi Bouzid and Tahrir Square probably started just as small....

Come on, let's bring the global eceonomy back to where it belongs - The Dark Ages.

I have a pig to offer. Who will bid me three chickens, a goat and pitcher of mead? We can either do an immediate and full barter, or if that's not convenient, I can allow for future delivery of one or more of the items, for a small premium...
Click to expand...

Or rather bring much needed sense back into the economy.

The problem is that right now, whenever financial institutions get their bets wrong, they are too big to fail and the government bail them out with public money. If governments always bail out losers, then these overtly risk loving behaviours will never be punished and will just keep getting worse. Who would not bet everything they have if they know they can't lose?

I am not convinced the argument that if capitalists were allowed to take their loses then the economy will go into the dark ages. And this idea that loses from the banks are somehow more important than loses from the tax payers. Think it is just scare stories to get the tax payers to cough up.

Anyway, more importantly, what is the best play here if Greece default? Short the DAX? When countries default in the past what happened then?
 
What's wrong with a hair cut and gentlemens agreement?

Let's not be too hasty now :cool:
 
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