Wednesday, Feb 10, 2010
We only just got started
Market Oracle: German Bailout of Greece, PIIGS Would Herald Shift of E.U. Power To Germany
Despite all the problems in recent weeks, Greek debt currently trades at a spread that is only one-eighth the gap of what it was pre-Maastricht — meaning there is a lot of room for things to get worse. With Greece now facing a budget deficit of at least 9.1 percent in 2010 — and given Greek proclivity to fudge statistics the real figure is probably much worse — any sharp increase in debt servicing costs could push Athens over the brink. See below for the chart.
Posted by freemanphil @ 12:36 AM (499 views) Add Comment
8 Comments
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1. freemanphil said...
2. rumble said...
German tax payer must be delighted.
3. andrew said...
Can't they just print more money like our own saviour of the world has done ?
4. mark wadsworth said...
You can't say "PIIGS" any more as it's not politically correct. The new name is "GIPSI".
5. mountain goat said...
Personally I doubt Germany will agree to any bailout. Spain etc would be queuing soon after that.
I disagree with the title a "German Bailout of Greece, PIIGS Would Herald Shift of E.U. Power To Germany". A bailout would mean a shift of power to the weaker members because it shows Germany desperately wants to hold everything together and prepared to pay for them.
6. bystander said...
...isn't this likely to be a case of kicking the can a little further down the street, but not answering any of the fundemenatl problems. Again a case of policy for the markets not policy for the populus. I dare say the Germans are going to be overjoyed to have their standard of living lowered because the Bundesbank has decided to keep throwing money at the PIGS just to placate an ever more hungry and manipulative market. You can't buck the market, but at some point someones got to try to muzzle it.
7. freemanphil said...
"GIPSI" - Oh my goodness, I really laughed my head off!! But, it is not actually funny that the media is using Nazi style demonization of minority elements that are being harmed by the restrictive Union (they need default and devaluation), so, these countries are being demonized for harming a union that should never have occurred.
8. magnaman said...
Looks like zee Germans are preparing the "firewall"
http://www.ft.com/cms/s/0/83de2cae-15a9-11df-ad7e-00144feab49a.html?nclick_check=1