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indirectapproach

Banks Dump Greek Debt On The Ecb As Eurozone Flashes Credit Warnings

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It highlights (by omission at least) something that has been troubling me,

http://www.telegraph.co.uk/finance/financetopics/financialcrisis/7734280/Banks-dump-Greek-debt-on-the-ECB-as-eurozone-flashes-credit-warnings.html

At the moment everyone is very focussed on the debts of Southern Europe and Ireland, in a euro context.

It looks like French exposure to this may very well be unsustainable/extremely hard to sustain.

I think the extent of German exposure (indirect as well as direct) has yet to play itself out.

But as I recall, before Christmas everyone was concerned about the extent of German exposure to eastern Europe.

I asked a reasonably well connected Jerman buddy of mine about this in Stuttgart in November 2009.

"Don't ask," was his reply.

Eastern Europe debt seems to be very much off the radar just now.

Does anyone have any info about it?

Edited by indirectapproach

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It highlights (by omission at least) something that has been troubling me,

http://www.telegraph...t-warnings.html

At the moment everyone is very focussed on the debts of Southern Europe and Ireland, in a euro context.

It looks like French exposure to this may very well be unsustainable/extremely hard to sustain.

I think the extent of German exposure (indirect as well as direct) has yet to play itself out.

But as I recall, before Christmas everyone was concerned about the extent of German exposure to eastern Europe.

I asked a reasonably well connected Jerman buddy of mine about this in Stuttgart in November 2009.

"Don't ask," was his reply.

Eastern Europe debt seems to be very much off the radar just now.

Does anyone have any info about it?

its under the carpet....forgotten about

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A report by RCB Capital Markets said German banks have yet to come clean on 75pc of their combined exposure to €45bn of Greek debt. The state-owned Hypo Re has revealed holdings of €7.8bn, equal to 243pc of its tangible equity. Commerzbanks’s subsidiary Eurohypo holds €3bn, or 77pc, of its tangible equity.

RBS said that some German banks may face risks if there is a voluntary debt restructuring by Greece, since this would not trigger debt insurance contracts on credit default swaps. This would leave them facing much larger debt write-downs than they bargained for.

:lol: Merkin's such an idiot. I wonder if she's told her hard working thrifty electorate that it's their own banksters that need the ECB bailout, not the lazy Greeks?

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It highlights (by omission at least) something that has been troubling me,

http://www.telegraph.co.uk/finance/financetopics/financialcrisis/7734280/Banks-dump-Greek-debt-on-the-ECB-as-eurozone-flashes-credit-warnings.html

At the moment everyone is very focussed on the debts of Southern Europe and Ireland, in a euro context.

It looks like French exposure to this may very well be unsustainable/extremely hard to sustain.

I think the extent of German exposure (indirect as well as direct) has yet to play itself out.

But as I recall, before Christmas everyone was concerned about the extent of German exposure to eastern Europe.

I asked a reasonably well connected Jerman buddy of mine about this in Stuttgart in November 2009.

"Don't ask," was his reply.

Eastern Europe debt seems to be very much off the radar just now.

Does anyone have any info about it?

It has been hidden for now! Latvia and others were ready to default some months ago. They represent a very small % of the Euro economy and have been repackaged. Greece for example is only 3% of the Euro economy, and theirs are smaller. However Greece represents the next area of contagion. The Western Eurozone banks inc UK have lent all the money to these bankrupt nations - ouch! Although France and Germany have lent the most, like with Greece, UK banks are right in there. So, it could all turn very nasty and quickly when and if the ECB bail out loses credibility. It may have started with the dumping of Greek Bonds. Other dumping may follow soon. If you read The Market Oracle, you will see that the ECB bail out does not add up on known facts, since in simple terms we cannot expect the extra borrowing to be paid back when the old borrowing could not be serviced or paid back! That view is held even with current budget cuts in progress as they are deemed insufficient and too late.

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...Greece for example is only 3% of the Euro economy,...

This is true, but the interesting thing is that French banks have lent the equivalent of 20% of French GDP to Greece. Its quite a news item here.

Back to the OP, Eastern Europe have swallowed their medicine and are living with austerity measures. The concern with the Greeks is they will not "roll over" unlike the former Stalinist countries who are more used to a bit of austerity under the old regime. Greek people have had it good for a long time and have lost touch with reality. This is also true of the UK, which is why its such a problem. Spain, Italy and Portugal are more likely to accept the pain than the Brits. Likewise the Germans and the French are still in la-la land. The French tend to get a bit hot under the collar, but the Germans are more restrained until they lose it and then they can compete with the best of us (remember the I G Metal thing a while back?)

Its "mowing season" here in southern France and the tractors are out trimming up the parks and roadsides. Every tractor has a van or small lorry parked up with a chap there to warn traffic and move the cones about, but mostly to smoke a fag and read a paper, or snooze in the sunshine. I watched a bloke mowing today about 100m from some sheep that were eating the same grass for nothing. Public sector waste in the UK is infinitesimal compared to the art form we have here.

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This is true, but the interesting thing is that French banks have lent the equivalent of 20% of French GDP to Greece. Its quite a news item here.

no, that's italy you are thinking of. france has loned 20% of GDp to italy.

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There was a diagram floating around this site c. 10 days ago with all the (alleged) French loans to the GIIPS.

In a nerdy moment I added them up and came to 911 billion dollars.

If we go with idiots guide French GDP, I make that c. 40% of French GDP,

http://en.wikipedia.org/wiki/French_economy

Edited by indirectapproach

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It highlights (by omission at least) something that has been troubling me,

http://www.telegraph.co.uk/finance/financetopics/financialcrisis/7734280/Banks-dump-Greek-debt-on-the-ECB-as-eurozone-flashes-credit-warnings.html

At the moment everyone is very focussed on the debts of Southern Europe and Ireland, in a euro context.

It looks like French exposure to this may very well be unsustainable/extremely hard to sustain.

I think the extent of German exposure (indirect as well as direct) has yet to play itself out.

But as I recall, before Christmas everyone was concerned about the extent of German exposure to eastern Europe.

I asked a reasonably well connected Jerman buddy of mine about this in Stuttgart in November 2009.

"Don't ask," was his reply.

Eastern Europe debt seems to be very much off the radar just now.

Does anyone have any info about it?

That is a really good question. I remember Eastern European debt being a hot topic in 2007!

Maybe the plumbers sent enough £'s home to pay their national debts off??

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  • 259 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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