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If Your Going To Default, Default First


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HOLA441

It's clear Greece is going to default.

Massive default is best way to fix the economy

Commentary: Clearing away the debt is the only way forward

Denniger had this link about the US economy.

So default is looking more and more likely, unless there is a structured debt jubilee and it's going to be a mass default is it better to be first?

As Fred said if your going to panic, panic first so by that measure if we are going to default is it better to be the first and get it over with?

If it was your call what would you do?

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HOLA442

It's clear Greece is going to default.

Massive default is best way to fix the economy

Commentary: Clearing away the debt is the only way forward

Denniger had this link about the US economy.

So default is looking more and more likely, unless there is a structured debt jubilee and it's going to be a mass default is it better to be first?

As Fred said if your going to panic, panic first so by that measure if we are going to default is it better to be the first and get it over with?

If it was your call what would you do?

Deafault is the only way to wipe the slate clean quickly. PAINFUL IN THE SHORT TERM, BUT BETTER IN THE LONG TERM. Greece should default now and withdraw from the Euro, devaluation will then do the job it should. Then I'll book a Greek holiday as it will be so cheap.

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HOLA443
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HOLA447

Well, you, if you have savings in any bank.

OK. I have savings in a bank.

So from a

'HPC told you that things weren't great with the world economy, here's a country about to go bust from too much debt'

point of view, Greece defaulting is a bit of a told you so moment.

But how will this help UK house prices down? Our gilts are now seen as a safe haven. It seems to me Greece has had big party with our retirees savings.

It suppose it will turn off the credit taps even more.

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HOLA448

Iceland already defaulted - nobody died

Iceland has a population about the size of Coventry.

A default would mean a complete lockup of the Greek economy. The Greek banking system could collapse as it holds billions of euros of Greek government debt. Other banks would refuse to lend to the Greek banks and the ECB could cut off its cash lifeline. Liquidity would dry up and suddenly there would be no money in Greece.

The ensuing chaos would spiral far beyond Greece's borders, though. It would first trigger around $5 billion worth of credit default swaps that investors in Greek bonds took out to protect themselves from a default. Financial institutions that issued the CDS would need to pay the face value of the bonds immediately, putting a dent in their bottom line. Furthermore, foreign banks holding Greek government debt would need to write down or even write off the value of that debt given the default.

LINK

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HOLA4411

Am I the only person here who doesn't want Greece to default?

Am I the only one who thinks that most people are like cute little puppies, and need their noses vigorously rubbed in the shit for a long, long, time before they learn their lesson? :)

No me too.

I want to see bankers lynched from trees or lampposts, anyone who bought a house 2003-007 and cant pay the bills in a debtors prison. and any mortgage broker who encouraged self cert loans to be disembowled. The liebour party to be locked in a burning building. Oh and Kirsty, Phil, Beenbags and those two off HUTH to be turned into the human caterpillar.

Yes, yes, things would certainly be quite different if i were PM.

evil-stewie.jpg

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HOLA4412
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HOLA4413

Am I the only person here who doesn't want Greece to default?

Am I the only one who thinks that most people are like cute little puppies, and need their noses vigorously rubbed in the shit for a long, long, time before they learn their lesson? :)

Isn't that what a default will be like?

How are those Argie boyos doing?

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HOLA4416

Am I the only person here who doesn't want Greece to default?

Am I the only one who thinks that most people are like cute little puppies, and need their noses vigorously rubbed in the shit for a long, long, time before they learn their lesson? :)

That would be the bankers IMHO... apparently, if you're a banker, 'rubbed in shit' = 'allowed to carry on stealing everything not nailed down'

Default won't be painless for the Greeks.

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HOLA4419

Countries never actually default. They just renegotiate the terms of their loans. Greece isn't going to slaps its hands together and say, "That's it! We're bust. Nobody gets paid anything." If they did they'd have Panzer divisions on their border before lunchtime (and that includes the time taken to storm through Austria, Slovenia, Croatia, Bosnia and Albania!)

Nope, we'll be talking haircuts and repayment holidays and the like.

Of course, a complete default would be right for Greece. Repudiate the debt and tear up the credit card once and for all. But I don't think they've got the balls to face down Germany.

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HOLA4420

French are not very happy at the moment

http://online.wsj.com/article/SB10001424053111904353504576566191261182836.html?mod=googlenews_wsj

"We can no longer borrow dollars. U.S. money-market funds are not lending to us anymore," a bank executive for BNP Paribas, who declines to be named, told me last week. "Since we don't have access to dollars anymore, we're creating a market in euros. This is a first. . . . we hope it will work, otherwise the downward spiral will be hell. We will no longer be trusted at all and no one will lend to us any more.

cant remember them ever being trusted

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HOLA4421

No me too.

I want to see bankers lynched from trees or lampposts, anyone who bought a house 2003-007 and cant pay the bills in a debtors prison. and any mortgage broker who encouraged self cert loans to be disembowled. The liebour party to be locked in a burning building. Oh and Kirsty, Phil, Beenbags and those two off HUTH to be turned into the human caterpillar.

Yes, yes, things would certainly be quite different if i were PM.

Burns.jpeg

post-15752-0-10522700-1315904138_thumb.jpeg

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HOLA4422

Countries never actually default. They just renegotiate the terms of their loans. Greece isn't going to slaps its hands together and say, "That's it! We're bust. Nobody gets paid anything." If they did they'd have Panzer divisions on their border before lunchtime (and that includes the time taken to storm through Austria, Slovenia, Croatia, Bosnia and Albania!)

Nope, we'll be talking haircuts and repayment holidays and the like.

Of course, a complete default would be right for Greece. Repudiate the debt and tear up the credit card once and for all. But I don't think they've got the balls to face down Germany.

Not so, countries can and do default.

They also reach the point where people stop pretending they exist cos it costs too much. See the end of the Turkish empire for details.

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HOLA4423

They could possibly win Euromillions on a triple rollover, 1000 times in a row.

Other than that, they're f*cked.

Sorry but this is not an option either as Greece do not participate in Euromillions.

The following countries take part in the Euro Millions Lottery - Austria, Belgium, France, Ireland, Luxembourg, Portugal, Spain, Switzerland and the United Kingdom.
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