Greece
I'd guess any "new sponsor" will ask some hard questions or secure a lot of physical on-the-ground collateral, local sentiment notwithstanding. Islands, ports, you name it. If you just defaulted (and perhaps finally set off a long-looming prospect of cascading defaults, derivative unwinds and global debt failure/purges), I'd say you'll be in no position to demand another "end of austerity" for many years. Rock and a hard place!
- spitthedog
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If a global recession kicks in then pumping more money into Greece might not make much difference i guess. Surely they'd be fcuked anyway on only tourism and olive oil?
"I don't care what the people are thinking, i ain't drunk i'm just drinking"
- spitthedog
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''More gloom on Greece. Germany’s finance minister, Wolfgang Schäuble, has just warned that there is “no expectation” of a solution to the Greek situation soon.
Speaking in Washington, Schäuble said Greece was in a “very difficult situation”, and criticised the new government for hurting its economy (by demanding a new deal with its creditors)
That suggests we should give up on hoping for a breakthrough at the next meeting of eurozone finance ministers in Riga, a week today. It also backs up George Osborne’s gloomy tone''
Speaking in Washington, Schäuble said Greece was in a “very difficult situation”, and criticised the new government for hurting its economy (by demanding a new deal with its creditors)
That suggests we should give up on hoping for a breakthrough at the next meeting of eurozone finance ministers in Riga, a week today. It also backs up George Osborne’s gloomy tone''
"I don't care what the people are thinking, i ain't drunk i'm just drinking"
Debt rescheduling and outright cancellation have been a way of life in recent years for utterly corrupt or inept regimes in Africa etc that simply pissed away funds borrowed with no effort at repayment, and some of the main advocates for this rescheduling/cancellation have been the very countries now playing hardball with Greece.They continue to ignore the austerity programmes that the country has already gone through in a genuine effort to repay debt, and the resulting catastrophic social and economic long-term effects on Greek society. Are African people that much more deserving than Greek people?
Even freaking Mexico just the other week successfully auctioned off Euro-denominated bonds that come due in a whopping 100 years. No joke! Why can't Greece do the same.. 100 years should be sufficient for them to figure out how to pay it back.
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I don't want to start a whole new thread: going well beyond Greece and focused more on the UK, this article by an esteemed American economist savages the whole philosophy of austerity.
http://www.theguardian.com/business/ng- ... y-delusion
http://www.theguardian.com/business/ng- ... y-delusion
I'd be interested in the thoughts of metaleap and others better versed in economics than me.the-austerity-delusion
I came, I argued, I'm out
I'm usually more interested in monetary and global-debt dynamics sans any political colorings .. in other words not personally as interested (still am, just not "as much") with fiscal choices, such as whether governments choose to spend their bond-sale revenues (tax revenues let's face it go to past debt service / interest payments anyway) mostly on their welfare state, or on their own buraucracy, or mostly on big lobbys whether military, financial, industrial..
If "austerity" is a political choice of reallocating fully existing funds/revenues to "less desirable" areas, then sure start protests, write articles, and vote differently. If however "austerity" affects all spending areas as a result of state revenues collapsing due to global changes in sovereign-debt perceptions and capital allocation preferences, tough beans, adapt and buckle up as a country, rediscover "neighbourly charity and the family unit" (hey it worked from 39 til 59, say), consume and shed built-up "fat reserves" (whether on their own obese bodies or in institutions and accounts) and come out better and stronger in the end..
If "austerity" is a political choice of reallocating fully existing funds/revenues to "less desirable" areas, then sure start protests, write articles, and vote differently. If however "austerity" affects all spending areas as a result of state revenues collapsing due to global changes in sovereign-debt perceptions and capital allocation preferences, tough beans, adapt and buckle up as a country, rediscover "neighbourly charity and the family unit" (hey it worked from 39 til 59, say), consume and shed built-up "fat reserves" (whether on their own obese bodies or in institutions and accounts) and come out better and stronger in the end..
- spitthedog
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I see Switzerland, Germany, Denmark ,Poland and several other European countries are on negative yields. Investors paying governments to hold bonds. How long can that go on for? Does this partly mean that consumer demand just isn't there and in fact the working class have had austerity for 6 years already on their savings accounts etc?
I read something the other day that said the falling oil price was partly caused by zombie insolvent companies all pumping out oil when in a normal functioning economy they would have gone bust. Surely in a way that is forced austerity as companies become less competitive.
I read something the other day that said the falling oil price was partly caused by zombie insolvent companies all pumping out oil when in a normal functioning economy they would have gone bust. Surely in a way that is forced austerity as companies become less competitive.
"I don't care what the people are thinking, i ain't drunk i'm just drinking"
- springrain
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This is getting serious now, chaps. They really are pushing Tsipras into a hole. The IMF know damn well that they are asking him to go back on election promises. They can't stomach the increased wealth tax - they insist on clobbering the poor and vulnerable.
Once again, an excellent article from the Guardian:
The red ink told its own story. Greece’s creditors looked at the plan submitted by Alexis Tsipras to end his country’s debt crisis and found it wanting. Like a teacher dealing with an obtuse pupil, the message in the revised document sent back to the Greeks was simple: this is a shoddy piece of work. Do it again...
...The response from the Greek government is that the Fund’s sums don’t add up either, and won’t add up unless budget savings are accompanied by a hefty dollop of debt relief. Analysis by the London-based consultancy Capital Economics suggests that Tsipras is right.
http://www.theguardian.com/business/201 ... ace-greece
Once again, an excellent article from the Guardian:
The red ink told its own story. Greece’s creditors looked at the plan submitted by Alexis Tsipras to end his country’s debt crisis and found it wanting. Like a teacher dealing with an obtuse pupil, the message in the revised document sent back to the Greeks was simple: this is a shoddy piece of work. Do it again...
...The response from the Greek government is that the Fund’s sums don’t add up either, and won’t add up unless budget savings are accompanied by a hefty dollop of debt relief. Analysis by the London-based consultancy Capital Economics suggests that Tsipras is right.
http://www.theguardian.com/business/201 ... ace-greece
'History is a set of lies agreed upon.'
Attributed to Napoleon
Attributed to Napoleon
- RainMan
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Greece should never been allowed to enter the Euro but they cooked the books...do what Iceland did, fold and start over, contagion is the problem, Portugal Spain bla bla, kick the can down the road. One more year of pissing in the wind and over.
Never mind.
- spitthedog
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Greece is the word, is the word that you heard, It's got groove, it's got meaning.
I heard that Greece's debt comes to something like one days worth of QE though. The news about Greece has been so negative of late i just wonder if the opposite will happen and they will strike some deal and kick the can further down the road as the debt denial continues. Dunno.
Countries like Portugal taken care of for awile with EU qe?? ;
“Portugal could see the biggest technical squeeze as a result of ECB QE,” said Peter Goves, a London-based strategist at Citigroup Inc., which recommends buying 30-year Portuguese bonds. “The hunt for yield clearly remains intense.”
That’s a boon for the Portuguese government because its borrowing costs should fall in international markets. The nation’s 10-year yield already tumbled to the lowest on record this week. It took advantage of the upswing in demand to sell 30-year securities in January, the longest bond maturity since the country exited an international aid program. The country’s debt agency has issued almost 60 percent of its 2015 target.
Already Best-Performer
Portugal’s government debt already was the best-performing in the euro area this year, returning 5.3 percent through Tuesday, according to Bloomberg World Bond Indexes. Germany’s earned 1.8 percent, while Italy’s gained 4.2 percent''
http://www.bloomberg.com/news/articles/ ... uro-credit
I heard that Greece's debt comes to something like one days worth of QE though. The news about Greece has been so negative of late i just wonder if the opposite will happen and they will strike some deal and kick the can further down the road as the debt denial continues. Dunno.
Countries like Portugal taken care of for awile with EU qe?? ;
“Portugal could see the biggest technical squeeze as a result of ECB QE,” said Peter Goves, a London-based strategist at Citigroup Inc., which recommends buying 30-year Portuguese bonds. “The hunt for yield clearly remains intense.”
That’s a boon for the Portuguese government because its borrowing costs should fall in international markets. The nation’s 10-year yield already tumbled to the lowest on record this week. It took advantage of the upswing in demand to sell 30-year securities in January, the longest bond maturity since the country exited an international aid program. The country’s debt agency has issued almost 60 percent of its 2015 target.
Already Best-Performer
Portugal’s government debt already was the best-performing in the euro area this year, returning 5.3 percent through Tuesday, according to Bloomberg World Bond Indexes. Germany’s earned 1.8 percent, while Italy’s gained 4.2 percent''
http://www.bloomberg.com/news/articles/ ... uro-credit
"I don't care what the people are thinking, i ain't drunk i'm just drinking"
- spitthedog
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Although saying that Portugal's bond yields seem to have near doubled since that article was written.
"I don't care what the people are thinking, i ain't drunk i'm just drinking"
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