Sunday, October 23, 2011
Do we have any leaders?
Europe's leaders threaten Greek default if banks won't take haircut and accept losses of £120bn
Europe's leaders are threatening to trigger a formal default on Greek debt and risk a “credit event†if banks refuse to accept losses of up to €140bn (£120bn, 50% haircut) on their holdings. Hardline eurozone members, backed by the International Monetary Fund (IMF), delivered the ultimatum this weekend after an official report found that in a worst-case scenario Greece could need a second bail-out of €450bn – twice the current package and more than the entire €440bn in the eurozone’s rescue fund.
Posted by who stole my pension? @ 03:25 AM (2649 views)
8 thoughts on “Do we have any leaders?”
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paul says:
“but UK officials are confident British banks will escape unscathed”
I’ve heard that before on erm … every single occasion that a bailout has become necessary. In fact more precisely, I was told that the taxpayer would not lose out when the government gave RBS £90bn of our money.
BTW, does anyone else think it utterly criminal that the RBS Wikipedia page has absolutely no mention of the bailout of 2008?
will says:
The Greek government may have to accept the latest plans this coming week, but the growing numbers of demonstrators in Athens may have other ideas.
mdmick says:
Paul, that must be a variation of:
“It’s on wikipedia – so it must be true!”
peter_2008 says:
Hmm, if banks let this drag on, their credit line will be cut off, because people don’t know their exposure.
Hmm, if banks take the hair cut, their credit line will be cut off, because people now know their exposure.
Ubear says:
This farce of exponentially compounded bad debt is getting really boring, the default will just become more destructive the longer this is dragged out!.
Greece, just default already!
uncle tom says:
The eurozone wrangling currently underway really beggars belief..
No-one seems to have any sort of plan that is remotely credible, or has any chance of providing the framework for an enduring solution – everything is focused on the creation of funds that can provide short term help for banks and nations – but only to provide cash that they are never likely to repay..
The rational approach is to consider the default scenario – the partial or total dismantling of the eurozone – and honestly cost the implications of that move (for example, it would not collapse cross border trade, any more than it’s creation expanded it..)
Any alternate idea, based on eurozone preservation, should then be honestly costed against the default option.
The trouble is, we are talking ‘europe’ here – where the real concern is the preservation of the gravy train..
If this charade continues much longer, there is a risk that things will get really ugly – a coup d’etat in Greece perhaps..
Crunchy says:
“Hardline eurozone members, backed by the International Monetary Fund (IMF)”
I stopped reading at that point.
Crunchy says:
One coup d’etat is as good as another.
Perhaps this time the PEOPLE may have OUR/SOME say in it.
V for Victory.