Will there be a Grexit?

[PurpleGorilla]

Just as well the mob are placated with cheap booze and flat screen TVs.

Lol. For now, yes. But we are in a mega bubble ZIRP nightmare which cannot last.

[BrilloPad]

Oh, that's right, there's normally a grace period, but they withdrew it. Given the sour relations between Lagarde and the Greek negotiators, particularly Varoufakis, it will be interesting to watch. It seems quite personal now.

Just what the Greek people need!

[BrilloPad]

Lol. For now, yes. But we are in a mega bubble ZIRP nightmare which cannot last.

I thought in 2008 it was going pop.

I agree it cannot last forever - but the bubble will get bigger before it pops. At least another 5 years.

[Zero Liability]

I thought in 2008 it was going pop.

I agree it cannot last forever - but the bubble will get bigger before it pops. At least another 5 years.

Especially if there is another mini crash - highly doubtful the Fed, BOE etc would not react with yet more QE. Gotta keep asset prices elevated, after all!

I doubt any central bank will push rates up more than a few basis points, and at a lethargic rate at that. U.S. election season is not far off and I'm sure 2020 will also be on their minds. Of course, this all assumes market expectations don't diverge significantly from central bank manoeuvring. In the end, it is contingent on the ability of CBs to continue subsidising sovereign debt and other 'assets', and their power to do so is by no means infinite; they are exceedingly fallible institutions. Nonetheless, the political will is there for them to continue extending and pretending.

[darmstadt]

There as a line in Lawson's Column that to get into the Eurozone they had to had to prove they had a deficit above -3% GDP, the said they had -1.5% where in fact they had -8%. So they fudged the books.

I genuinely feel sorry for the general public and sadly it's going to be really bad for them, thankfully Syriza's bluff about taking on Russia's money was completely ignored by the eurozone. For that Syriza can go and feck themselves. The public should now call for an election and just take the pain for 20 years.

They've been fiddling the books the whole time and who helped, yep, bankers, namely Goldman Sachs: Greek Debt Crisis: How Goldman Sachs Helped Greece to Mask its True Debt - SPIEGEL ONLINE

[DodgyAgent]

They've been fiddling the books the whole time and who helped, yep, bankers, namely Goldman Sachs: Greek Debt Crisis: How Goldman Sachs Helped Greece to Mask its True Debt - SPIEGEL ONLINE

It also speaks volumes for the competency of your precious EU in letting the Greeks in. I am pretty sure Goldman Sachs will have been "instructed" to get Greece "in shape" to join

[PurpleGorilla]

I thought in 2008 it was going pop.

I agree it cannot last forever - but the bubble will get bigger before it pops. At least another 5 years.

Me too, I did not anticipate the amount of QE ZIRPing to prop up the madness.

This Greece business could be the catalyst. If not I agree at least 5 more years of madness.

I took a nice walk through some woods at lunch to get back some perspective. But I makes me so fricken angry!

[BrilloPad]

Especially if there is another mini crash - highly doubtful the Fed, BOE etc would not react with yet more QE. Gotta keep asset prices elevated, after all!

I agree. So I think at some point people will not bother to save - only borrow. Could be a long time....

[BrilloPad]

Me too, I did not anticipate the amount of QE ZIRPing to prop up the madness.

This Greece business could be the catalyst. If not I agree at least 5 more years of madness.

I took a nice walk through some woods at lunch to get back some perspective. But I makes me so fricken angry!

Enjoy your walk. Then go back to your cheap booze and flat screen TV. Pretend its not happening....

[Zero Liability]

I agree. So I think at some point people will not bother to save - only borrow. Could be a long time....

Good time to be a borrower, especially a highly leveraged 'investor'. Particularly if the debt is fixed rate.

Also it may just be by memory short circuiting but there seem to be more and more 0% purchase rate credit cards on longer and longer time horizons.