Tuesday, February 21, 2012

Long live the Euro?

Britain will pour billions of pounds into shattered Greek economy

"Britain is to pour billions of pounds into propping up the shattered Greek economy – despite warnings the latest bailout will fail".

Posted by alan @ 06:24 PM (2637 views)
Please complete the required fields.



24 thoughts on “Long live the Euro?

  • Britain will do anything that covers up the waste of space it is.

    Reply
    Please complete the required fields.



  • which is cheaper giving greece money or britain filling up with greeks looking for work ?

    Reply
    Please complete the required fields.



  • Best quote of the day I’ve seen so far is from Paul Krugman:-

    ‘What’s happening is that nobody is prepared to take the plunge into either of the paths that might eventually lead out of this: sustained aid (not loans) to Greece, or departure from the euro, leading eventually to higher competitiveness and faster growth. Both options would be politically catastrophic, which means that they can’t be taken until there is literally no alternative.’

    Every sane person knows where this is all going but politicians, especially european ones will carry on regardless with their great european project until they are caught out. The final result of their vanity being to the cost of everyone else as we watch the ‘greek tragedy’ unfold from the stalls.

    Reply
    Please complete the required fields.



  • @ enuii

    That’s it in a nutshell.

    And this is also true of the joke that is called the UK housing market. One way or another, one day at least, there will be distress and there will be many sufferers. The majority are blind and continue, in the meantime, with the cold comfort of ‘I’m alright, Jack’.

    So be it.

    Reply
    Please complete the required fields.



  • What a bloody rip off. We have robbed people in Britain to bribe the Greeks into surrendering their national sovereignty.

    This is economic warfare.

    Reply
    Please complete the required fields.



  • DM says: “Before Athens will see any new funds, it has to put into practice a whole range of previously promised cuts and reforms. More significantly, Greece will have to pass within the next two months a new law that gives paying off the country’s debts legal priority over funding government services. In the meantime, Athens has to set up a kind of escrow account, managed separately from its main budget, that will at all times have to contain enough money to service its debts for the coming three months”.

    So….they will fiddle around till there is no alternative – just as enuii’s post from Paul Krugman (3) above.

    Reply
    Please complete the required fields.



  • Greece will be left to go bust, and subsequently exit from the Euro. This is a certainty. Even the European politicians have finally cottoned on to this. Everything else is just buying time while practical preparations take place behind the scenes.

    Agree wholeheartedly with enuii @ 3.

    Reply
    Please complete the required fields.



  • @7 “You are now in the process of paying almost 700% interest rates: http://www.bloomberg.com/quote/GGGB1YR:IND

    And this bailout will cause their rates to soar above 1000% possibly before March.”

    Are you sure? If lenders are getting these sort of rates they will have recovered their initial capital after less than two months.

    Reply
    Please complete the required fields.



  • @9 this is yield, not interest rates, different things.

    Reply
    Please complete the required fields.



  • Greece faces a difficult decision…

    Do they want to hit over the head with a lump hammer, or do they want to be hit over the head with an axe?

    Obviously it’s the lump hammer. Greece should default and default BIG.
    Painful, in the short term, then the economy will start doing well again, because it will be the cheapest place in Europe to holiday.

    Reply
    Please complete the required fields.



  • Really? Does the UK really hand over this money in devalued GBPs? Really?

    Or is this just a confidence sticking plaster promissory exercise – seeing as its a partisan article from the Mail I think its probably the latter.

    Reply
    Please complete the required fields.



  • Greek 1yr notes have opened at 731% HYPERINFLATION – http://www.bloomberg.com/quote/GGGB1YR:IND

    As predicted, the bailout has just led to higher yields demanded by Goldman Sachs, who cooked Greece’s books in the first place. Criminality pays in the Old anti-World dis-Order. They are using Greece to rob Britain, USA, France and Germany. Meanwhile also robbing national sovereignty.

    Meanwhile, the BBC is claiming that the new bailout has saved Greece!!!

    Oddly, the 2, 5 and 10yr notes are remaining stable.

    1000% rip off by March seems certain now.

    Reply
    Please complete the required fields.



  • Ambrose in today’s Telegraph says it won’t be long before the Greeks are back for more.

    Meanwhile the FT’s article suggests Lisbon will not be long in requesting a change in their E78bn bailout terms.

    Reply
    Please complete the required fields.



  • “Are you sure? If lenders are getting these sort of rates they will have recovered their initial capital after less than two months.”

    Correct. This is therefore telling you that there’s a very good chance Greece will default wihtin 2 months.

    Reply
    Please complete the required fields.



  • [email protected] …. “Greek 1yr notes at 731% HYPERINFLATION”

    Whoa – hold yer horses: the unit is basis point and not % equivalent to 7.317% which is a lot different. Bonds are quoted in various ways and my own lack of fluency makes me cautious with every bond graph I see!

    The problem with Greece is that they are so far down a slippery slope that the scale of their debt and the interest payments is such that they cannot pull themselves back from the brink. Read Reinhart & Rogoff and the prognosis is neither avoidable or pretty.

    The Krugman quote is right but the EURO is a political creation and political solutions are being sought. It is in the nature of politicians that they will send young men and women to war and death for the nation; but will protect their own political careers at every cost to that nation. Costs priced in money, and blood, and social misery for the proles.

    GS certainly cooked the Greek books to initiate these bonds; and I would be entirely happy to see them held responsible for the consequential loss.

    To add spice to the fire; don’t forget that the Nazis stole the Greek central bank gold during the war. The Greeks think that now would be a good time to have it back!

    It was Warren Buffett quoting Benjamin Graham talking about the manic depressive “Mr Market” weaving between being over optimistic and over pessimistic about things. It was a thought which leaves me wondering how long before the bond markets decide to switch to a pessimistic view of the UK. It isn’t hard: if you look at national debt as being about ability to repay then you notice unsecured personal debts, mortgage debt with negative equity and a pattern of continued deficit spending by government on top of large existing bonds. The coalition have used rhetoric about austerity to lull the bond markets whilst actually making limited cuts in practice. Rhetoric only takes you so far and then reality swings back into view.

    Right I’m off to wash my mouth out with soap and water … agreeing with Krugman … ick.

    Reply
    Please complete the required fields.



  • Well, this is all a fascinating real-life experiment, isn’t it? The likes of UKIP have been predicting this for a decade, for sure, a painted clock is right twice a day and all that, but allowing Greece into the Euro was an experiment which was doomed from the start.

    I love the idea of the Islamist Lizard contrail-weaving Commie bankers paying 1,000% interest – or are they receiving that much?

    Reply
    Please complete the required fields.



  • The Mail headline is highly misleading. This is not money that ends up in Greece. It merely keeps the debts rolling over by writedowns, bond swaps and buybacks and a bit of recapitalisation of Greek banks. None of it goes to investment that might enable Greek GDP to grow (or stop falling) and the country to service its debts.

    Reply
    Please complete the required fields.



  • MW @16 – ‘doomed from the start’. A lot of projects in politics and finance are doomed from the start. The important thing is that certain people and organisations make money between the start and the end of the project. One small e.g. French and German arms manufacturers have done very well from Greece’s custom. (For most of the last decade Greece has been one of the top 5 arms importers in the world.)

    Reply
    Please complete the required fields.



  • Icarus comment 19, yes of course, there was never any pretence that this money would “end up in Greece”, the whole point is that instead of owing private creditors €200 billion on government loans, Greece now owes ECB/IMF €110 billion.

    So Greece has been released from €90 billion of debts (because it couldn’t pay them anyway), in exchange for this, the EU/IMF are trying to impose “austerity measures”. It’s crazy, but it might just work.

    Reply
    Please complete the required fields.



  • MW – my post17 was merely a response to the headline as shown above (turns out it was the poster’s headline rather than the DM’s)

    Reply
    Please complete the required fields.



  • Marx Wadsworth, why do you have to bring lizards and contrails into this. I gave you the freaking link. The bond holders are Goldman Sach’s, et al. and they on record cooked Greece’s books. They are now foreclosing on all of Greece’s assets and are demanding loan shark rates to be paid by the rest of the EU and IMF.

    What part of corporate rip off do you not understand?

    What part of this and having your children’s children’s future stolen is cute and funny?

    Reply
    Please complete the required fields.



  • mark wadsworth says:

    Icarus, I was agreeing with your comment 17. The Mail headline is entirely misleading.

    But I’ve got to go now, they are seeding the clouds over my office with acid rain and the lizard paedophiles are shutting down our internet conne

    Reply
    Please complete the required fields.



  • Don’t see any demonstrations. No one cares until it’s too late

    Reply
    Please complete the required fields.



Add a comment

  • Your email address is required so we can verify that the comment is genuine. It will not be posted anywhere on the site, will be stored confidentially by us and never given out to any third party.
  • Please note that any viewpoints published here as comments are user´s views and not the views of HousePriceCrash.co.uk.
  • Please adhere to the Guidelines

Your email address will not be published. Required fields are marked *

You may use these HTML tags and attributes:

<a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <s> <strike> <strong>