Thursday, Apr 22, 2010
Bring it on
Yahoo: IMF and Bundesbank fear contagion from Greece as bond spreads soar to fresh records
The International Monetary Fund has warned that Greeces debt crisis risks spinning out of control, threatening to spill over across the region unless action is taken soon to restore confidence.
"In the near term, the main risk is that if left unchecked market concerns about sovereign liquidity and solvency in Greece could turn into a full-blown and contagious sovereign debt crisis,"
Posted by mark @ 10:41 AM (798 views) Add Comment
8 Comments
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1. uncle tom said...
Eurostat has confirmed that Greek debt was greater than previously projected for 2009 - 13.6%..
..does anyone seriously believe they can turn their economy around now?
2. jack c said...
uncle tom - ..does anyone seriously believe they can turn their economy around now? - no is I suspect the answer as many comentators thought it was past the point of no return sometime ago. The real concern now is that there is genuine Systemic Risk.
3. mark said...
I would be intrigued on how the systemic risk will effect the UK, on what level?
4. debtfree said...
The following link is an excellent article about the 'Sovereign Time Bomb' that is well worth a read
SOVEREIGN ALCHEMY WILL FAIL : http://matterhornassetmanagement.com/2010/02/11/sovereign-alchemy-will-fail/
The problem is not just the current debt levels of these nations, because the deficits in all the countries are rising. Tax revenues are collapsing and with rapidly rising unemployment, the governments’ expenses for social charges are soaring.
5. mountain goat said...
New round of QE in this environment? Don't think so.
The days of addictive cheap-money peddling are coming to an end.
Struggling economy and house price correction to continue.
Since we had such a euphoric back-to-normal recovery looks like a big crash ahead.
6. debtfree said...
@5 moutain goat
IMF warns time running out to tackle 'too big to fail' banks - 20th April 2010
Further action by the Bank of England and other central banks to buy up securities through quantitative easing programmes might be needed, the report added.
http://www.guardian.co.uk/business/2010/apr/20/imf-time-running-out-banks
7. debtfree said...
Just like to add that quantitative easing is on 'hold' and the program capped at £200 billion ... so it's far from finished.
8. mountain goat said...
@ Debtfree
Damned if they do, damned if they don't. QE now will simply accelerate the sovereign debt crisis. The IMF gets its authority from Washington and that's ultimately where this crisis is heading.