"Private creditors have already suffered big writedowns on their Greek
bonds under a second bailout for Athens sealed in February, but this was not
enough to put the country back on the path to solvency and a further
restructuring is on the cards. The latest aim is to reduce Greece's debts by a
further €70bn to €100bn, several senior eurozone officials familiar with the
discussions told Reuters, cutting its debts to a more manageable 100pc of annual
economic output. This would require the European Central Bank and national
central banks to take losses on their holdings of Greek government bonds, and
could also involve national governments also accepting losses. The favoured
option is for the ECB and national central banks to carry the cost, but that
could mean that some banks and the ECB itself having to be recapitalized, the
officials said. The ECB declined comment on Friday".
Spain is Bust. Italy is pretty much bust and if the truth be told is bust.
Ditto Portugal.. Greece is just the weakest and as such fell first.
You have to let people including Governments fail if they are incompetently run. Let them go to the wall and any bank that was dumb enough to buy debt from these States.
You have to let people including Governments fail if they are incompetently run. Let them go to the wall and any bank that was dumb enough to buy debt from these States.
2 comments:
Does anyone else here think this is all a big charade, and that we the people don't even know what is happening behind the scenes. ?
This daily update on borrowing costs for nations. What does it REALLY mean for the average citizen?
Do low borrowing costs in the UK mean much if at least a million more people are expected to lost their job in the next year?
I just think this whole debacle is a bit of side show for what is really happening. But then I don't trust any of what is being fed to us by the politicians, the markets or the financial "experts".
I just don't believe it is in any of their interests for the public to know the true story. Afterall, look at how long it took for the manipulation of the Libor rates to come to the attention of the public, and now it's considered by most as no big deal. (Meanwhile how much did the banks make from this manipulation?)
Could this be a cunning plan? Throw out some good words, positive statements and keep the markets, euro and bonds out of the danger area so all of those hard working politicians and central planners can have a peaceful time on holiday.
Besides the real show isn't going to start until the temperature in Athens drops, they return from their holidays, and the protests at the latest round of draconian, unworkable, self defeating cuts start up again.
The Troika aren't going to report on just how badly Greece have missed their targets for a while.
The German court won't rule till September on the ESM, or other countries when it is a case of putting your money where your mouth is.
Cynical Moi?
btw, have looked through the papers are can't find any stories on the cheering crowds lining the streets of Athens, waving their EU flags as Barroso sweeped by in his limo, smiling and waving back at his adoring people.
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