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P I M C O Tells E U To Pay Off Greece's Debt--They Can Never Shift It

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http://uk.finance.yahoo.com/news/PIMCO-says-Europe-relieve-reuters_molt-3051747975.html?x=0

PIMCO says Europe should relieve Greece of debt
15:46, Saturday 5 February 2011
BERLIN (Reuters) - Europe (news) should relieve Greece of some of its debt burden as its savings programme would only stifle economic growth, the head of the world's biggest bond fund was quoted as saying in a German magazine on Saturday.
Pacific Investment Management Company's (Pimco) chief executive, Mohamed El-Erian, told Der Spiegel that Greece's only way out of its debt crisis was for Europe to reduce Greek debt from 140 percent of gross domestic product (GDP) to 90 percent.
"Debts should fall under 90 percent of GDP," said El-Erian, who helps oversee more than $1.1 trillion in investments. "The people cannot withstand (the current savings programme)."

Makes sense to me. But will Germany be willing to hand over hard earned Deutsch-Euros to try to fill a bottomless and very corrupt pit?

And while Germany are at it they might as well hand some Euros to us as our debt:GDP ratio is ever so "slightly" worse than that of Greece:

http://www.ukmediacentre.pwc.com/News-Releases/PwC-projects-total-UK-public-and-private-debt-to-hit-10-trillion-by-2015-f84.aspx

• Total UK debt was around 540% of GDP at the end of 2009, up from around 200% of GDP in 1987.

•This large and persistent rise in total UK debt has been driven by property-related borrowing by both households and non-financial companies and (most dramatically since 2000) by sharply rising lending between financial institutions.

•By comparison, UK government debt was relatively low and stable as a share of GDP from 1987 to 2007 and, despite rising sharply due to the recession, was still less than a sixth of total private sector debt in 2009.

•Total UK debt is projected to top £10 trillion by 2015 at a time when GDP will still be below £2 trillion, according to the main scenario outlined in PwC’s latest UK Economic Outlook report.

High debt levels are affordable at present due to exceptionally low interest rates, but this may not remain the case as rates gradually rise back to more normal levels over the next five years.

Edited by Realistbear

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surely the creditors are the correct people to relieve Greece of its debt.

Investors like Pimco would rather take their bail out now, rather than eat their own bad investments.

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surely the creditors are the correct people to relieve Greece of its debt.

Investors like Pimco would rather take their bail out now, rather than eat their own bad investments.

Bloo Loo,

quite right, it isnt for anyone other than the creditors to bail out Greece, why anyone including Germany should do it, is beyond me. Any explanation for your thoughts on this one RB?

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Bloo Loo,

quite right, it isnt for anyone other than the creditors to bail out Greece, why anyone including Germany should do it, is beyond me. Any explanation for your thoughts on this one RB?

I think the chips should fall where they may--if Greece is broke let them out of the Euro so they can start peddling holidays at reasonable prices. I was looking into a couple of weeks this March and was put off by the high prices.

What I find funny is the view taken that Greece's debt ratio is appalling at 100% + of GDP which does not even come close to ours at 5 times that amount (PWC are obviously inclouding Brown's hidden debits).

PWC conclude it all okay so long as IR remain low. Little wonder Merv is so vigilant--one hike and that hideous debt ratio turns into an Elephant with a spike up its bum.

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I think the chips should fall where they may--if Greece is broke let them out of the Euro so they can start peddling holidays at reasonable prices. I was looking into a couple of weeks this March and was put off by the high prices.

What I find funny is the view taken that Greece's debt ratio is appalling at 100% + of GDP which does not even come close to ours at 5 times that amount (PWC are obviously inclouding Brown's hidden debits).

PWC conclude it all okay so long as IR remain low. Little wonder Merv is so vigilant--one hike and that hideous debt ratio turns into an Elephant with a spike up its bum.

RB,

I am agreeing with you this time. Let Greece out of the Euro. That will mean it defaults of course, creditors will just have to whistle.

What amazes me about our debts is that interest rates on our long bonds are so low. Weird, because we are either going to default on those bonds directly, or stealthily by printing money. Going short UK bonds seems to be the trade of the decade.

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PIMCO, though based in RB's favourite place of Orange County, California are owned by Allianz. So its a 100% German owned organisation.

No wonder they suggest that the EU should be bailing out Greece, rather than a default, which would hurt quite a number of German organisations, even those based in Bavaria :rolleyes: who are are up to their necks in Greek debt.... <_<

Edited by skomer

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PIMCO, though based in RB's favourite place of Orange County, California are owned by Allianz. So its a 100% German owned organisation.

No wonder they suggest that the EU should be bailing out Greece, rather than a default, which would hurt quite a number of German organisations, even those based in Bavaria :rolleyes: who are are up to their necks in Greek debt.... <_<

Good point. Pimco ownership came up on the forum a couple of years ago, but I'd forgotten about it.

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http://uk.finance.ya...747975.html?x=0

PIMCO says Europe should relieve Greece of debt
15:46, Saturday 5 February 2011
BERLIN (Reuters) - Europe (news) should relieve Greece of some of its debt burden as its savings programme would only stifle economic growth, the head of the world's biggest bond fund was quoted as saying in a German magazine on Saturday.
Pacific Investment Management Company's (Pimco) chief executive, Mohamed El-Erian, told Der Spiegel that Greece's only way out of its debt crisis was for Europe to reduce Greek debt from 140 percent of gross domestic product (GDP) to 90 percent.
"Debts should fall under 90 percent of GDP," said El-Erian, who helps oversee more than $1.1 trillion in investments. "The people cannot withstand (the current savings programme)."

Makes sense to me. But will Germany be willing to hand over hard earned Deutsch-Euros to try to fill a bottomless and very corrupt pit?

And while Germany are at it they might as well hand some Euros to us as our debt:GDP ratio is ever so "slightly" worse than that of Greece:

http://www.ukmediace...y-2015-f84.aspx

• Total UK debt was around 540% of GDP at the end of 2009, up from around 200% of GDP in 1987.

•This large and persistent rise in total UK debt has been driven by property-related borrowing by both households and non-financial companies and (most dramatically since 2000) by sharply rising lending between financial institutions.

•By comparison, UK government debt was relatively low and stable as a share of GDP from 1987 to 2007 and, despite rising sharply due to the recession, was still less than a sixth of total private sector debt in 2009.

•Total UK debt is projected to top £10 trillion by 2015 at a time when GDP will still be below £2 trillion, according to the main scenario outlined in PwC's latest UK Economic Outlook report.

High debt levels are affordable at present due to exceptionally low interest rates, but this may not remain the case as rates gradually rise back to more normal levels over the next five years.

Have they per chance underwritten a load of Greek Credit Default Swaps, and are worried they might have to pay out?

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PIMCO, though based in RB's favourite place of Orange County, California are owned by Allianz. So its a 100% German owned organisation.

No wonder they suggest that the EU should be bailing out Greece, rather than a default, which would hurt quite a number of German organisations, even those based in Bavaria :rolleyes: who are are up to their necks in Greek debt.... <_<

well, all I can add is that anyone who bought Greek debt has only themselves to blame....and they have within their power to say to Greece, look, we know we arent getting it all, so how about a 50% capital forgiveness, and lets have interest on the balance for the remainder of the term.

this is the way of the market.

Ok, so some savers lose out, but better than ALL savers losing out by inflation and tax.

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  • 312 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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