Greece WILL default on its debts ....

[DimPrawn]

I have to agree.

I lent Stavros, waiter at the best fish taverna in Faliraki ten Drachma in 1992, and the **** hasn't paid me back a penny.

[sasguru]

Actually what will happen is the default will be dressed up as something else.
But I'll still make a lot of money.

[DimPrawn]

Actually what will happen is the default will be dressed up as something else.
But I'll still make a lot of money.

Yes sas, of course you will. Now back into bed before the nurse catches you again.

[MrMark]

All sorts of prediction going around now..

http://www.marketoracle.co.uk/Article29092.html

Many are going to receive this with skepticism. EURO is set to soar esp against the US dollar and UK pound.

As per the EU stat released debt maturity schedule of PIIGS, a total of 370 bn euros was paid in 2010 while 328 is set to be paid in 2011. What is important to understand though is that the amount due to be retired decreases to 96.5 bn euros in 2016.

[doodab]

All sorts of prediction going around now..

http://www.marketoracle.co.uk/Article29092.html

Even if the ECB has to step outside its mandate to purchase all PIIGS debt in 2011/12, the balance sheet hit should not be more than 600 bn euros compared to a USD 2.3 trillion for the US. And that is the worst case esp given that Italian and Spanish yields are currently comfortably placed led by strong auctions.

So basically everything is going to be fine for the €, it's the $ we need to worry about especially if they can't agree this debt ceiling increase.

[sasguru]

"Even if the ECB has to step outside its mandate to purchase all PIIGS debt in 2011/12, the balance sheet hit should not be more than 600 bn euros compared to a USD 2.3 trillion for the US. And that is the worst case esp given that Italian and Spanish yields are currently comfortably placed led by strong auctions. "


So basically everything is going to be fine for the €, it's the $ we need to worry about especially if they can't agree this debt ceiling increase.

He he 600 billion they said, looks like its more like 2 trillion Euros that is needed. And of course that means prinitng money.

[doodab]

He he 600 billion they said, looks like its more like 2 trillion Euros that is needed. And of course that means prinitng money.

I suspect this is a hedge against the consequences of default rather than a simple debt buyback scheme for the next couple of years.

[sasguru]

I suspect this is a hedge against the consequences of default rather than a simple debt buyback scheme for the next couple of years.

You think? I'd wager everything that every penny will be used up

[doodab]

You think? I'd wager everything that every penny will be used up

It will quite possibly be lent out, yes. If Greece defaults, as seems likely, it will need to cover the requirements of the eurozone periphery for an extended period, not simply the next 6 to 12 months or so.

[Arturo Bassick]

I can not see the point of bailing out the Greeks.
I do not see how anybody can control their profligate spending.
I seem to remember reading that they saw the first bail out as an excuse to spend more.

Unless some controls can be put on Greek spending then the only sensible thing to do is eject them from the Euro and carry the loss.