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Realistbear

Greek Bonds Face Additional 5% Penalty

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http://uk.finance.yahoo.com/news/greek-bonds-face-extra-5-percent-charge-at-ecb-reuters_molt-778b641a62ee.html?x=0

Greek bonds face extra 5 percent charge at ECB
Topics:BondsUpgrades & DowngradesEurope
14:02, Tuesday 15 June 2010
FRANKFURT (Reuters) - Greek government bonds will attract an extra 5 percent penalty when banks use them as security for European Central Bank funds, an ECB spokesman said on Tuesday after Moody's cut the country's debt to junk status.
The extra 'haircut' means commercial banks will receive less money in exchange for Greek bonds than they would if they used government bonds from any other euro zone nation.
"A haircut will be applied, it will be an extra 5 percent," an ECB spokesman said when asked by Reuters.

This sounds like end game. One step to default and contagion.

Stocks flying up though.

Spain might soon face a bit of headwind--good thing a newspaper said they are all right for a loan:

http://uk.finance.yahoo.com/news/spain-s-debt-costs-rise-reuters_molt-e7d9467a4322.html?x=0

Spain's debt costs rise

Paul Day, 14:06, Tuesday 15 June 2010

MADRID (Reuters) - Spain's financing costs jumped at a T-bill auction Tuesday but demand was solid as a newspaper reported a government move to reassure investors over the strength of Spanish banks.

Edited by Realistbear

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http://uk.finance.yahoo.com/news/spain-sells-debt-at-premium-reuters_molt-40a794e47cdc.html?x=0

MADRID/BERLIN (Reuters) - European policymakers sought to squash talk of a euro zone rescue for Spain on Tuesday as the country saw its borrowing costs rise in a debt auction ahead of an EU summit to discuss steps to fix the currency bloc.
Germany's ZEW
economic sentiment indicator suffered its biggest monthly drop
since the height of the financial crisis in October 2008 -- right after the collapse of Lehman Brothers (NYSE: LEH - news) -- partly due to
rumours about debt problems
in Spain.

Big moves based on rumours is a sign the train wreck is closer. A lot of denial going on and the markets are riding it awhile longer. The debt is still there and the problems will not go away because sentiment changes.

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There are different levels of junkiness, from BB+ down to D. I guess it has been downgraded another notch.

The Greek are Mousakka junkies while the Spanish are Gazpacho junkies. Very nice in their own way, but still the interest rates are rising even with the ECB involved. There will be a day and a time when all this falls down. 'I give you a new national credit card to help you pay off the last, but at a lower rate for the first month. Crisis resolved'

Edited by plummet expert

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  • 142 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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