If anyone is following the Greek thing...

U

usta in Portland

Daily Driver
I was puzzled at a concept level about this headline and the implications of the idea that bondholders should somehow be immune to losses. It is certainly understandable that no debtor wants its ability to repay debt put into general doubt, especially if that debtor is a government, but the yields paid on bonds is partially a reflection of the underlying risk and it stands to reason that if the risk were truly zero then yields would be very low indeed. If the holders of Greek debt-meaning the banks- made a bad decision regarding the basic risk/reward calculation why should they not be exposed to a loss like any other investor who errs? Is all this fuss just because it is, in fact, the banks that are exposed and not a widely distributed retail investor population? :hmm:

http://www.bloomberg.com/news/2011-...bt-losses-troubling-message-to-investors.html
 
as i told you

i am from greece and its not only the banks its the politicians and its citizens robbing . example there are 100,000 dead that are still collecting pensions. on the island of zakinthos 25% of the population are collecting disability for being blind . when a political party leaves office they collect unemployment, there are 110 political parties.
 
Yes, I'm sure all that happens...

and simple tax evasion costs the government 35% of the revenues it should be getting. But, actually I was talking about the other European banks who are exposed to Greek debt.:) That Greece is a failure is pretty obvious at this point. Probably should just be dumped from the Euro-but what a mess for the average Greek citizen if that happened.:shock:
 
the imf

gave them the first bail which if i am correct the US puts in 17% of the funds and the bail out was insured by AIG if greece went into default
 
True, we still are on the hook...

for a 90% ownership stake in AIG after their debt to the Treasury was converted to stock back in February. So, depending on how much CDS exposure AIG has, the investment there is in jeopardy. It's interesting in looking at the numbers on just how much of the total of TARP money actually got into AIG. The original TARP fund of $700B only distributed $411B and of that $125B went to AIG. Wonder what will happen if AIG winds up having a big exposure-can't seem to find any hard numbers on that:hmm:
 
If .........

If you owe the Bank $10,000 and can't pay then you've got a problem.
But,
If you owe the Bank $100,000,000 and can't pay then the Bank has a problem.

This to me sums up the Euro crisis.
The Banks have huge problems and can't afford to crystalize the debts they're owed. They think it's better to put off the day of reckoning because drawing a line in the sand and wiping the slate clean would create a run-away monster beyond their control.
But the more they put off the evil day of reckoning the worse the problem becomes.
So instead of drawing a line in the sand, they bury their collective heads in the sand.
 
And the weekend 'summit'...

goes by with another 'sort' of' solution. The European financial press was calling for a writedown of Greek debt more than a year ago and telling the Eurozone leaders it was going to happen sooner or later. I guess later is here-or almost here. What a mess:shock: And all over an economy that is about 1.8% of the total European Union GDP. Mighty small tail wagging a mighty big dog.

Should be a lesson in here for our leaders, but I have a suspicion they just aren't gonna learn it.:(
 
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