Reply to: Greece Considers Exit from Euro Zone

[alreadypacked]

The Chinese are involved in Greece, and were one of the first to buy goverment bonds. It is not in their interest for Greece to leave the Euro as they wanted Greece to be their mouth piece in Europe. So it's not going to happen.

The Chinese will step in and buy the goverment assets that need to be sold inorder to repay the EU loans. This is just a ploy to get a better price for the Greek goverment assets.

[swamp]

That wouldn't surprise me at all.

I can't recall how expensive Greece was during the Drachma years, but I've certainly been to some of the new Eurozone states just before and after they joined, and have noticed how they go from a cheap holiday destination to one charging German prices for stuff.

Greece was very cheap during the Drachma years. And there were lots of unspoilt bits too.

[scooterscot]

EU Said to Consider Requiring Collateral for More Greek Aid

EU Said to Consider Requiring Collateral for More Greek Aid - Businessweek

Expanding the 110 billion-euro ($158 billion) lifeline Greece received last year may mean that assets or revenue from asset sales are used to secure extra funds, the person said. Demanding collateral, an idea floated last year by Finland, may help avoid a political backlash against bailouts.

Surely they must default now? Would the people of the UK stand for selling our railways, car companies, to foreign owners oh wait a minute...

[AtW]

Yes, including Government spending in GDP is a classic example of an outdated, perverse incentive, just an invitation for inefficiency and waste.

You've just agreed with one of my economic views. Better edit your post or no one else will take you on here seriously.

[OwlHoot]

Naturally if Govt spending is so huge then cutting it will cause drop in GDP, but that part was never proper growth - it was reckless spending based on debt!

Yes, including Government spending in GDP is a classic example of an outdated, perverse incentive, just an invitation for inefficiency and waste.

[CheeseSlice]

Seems like it will be cheap to go on holiday to see the masterpieces of the ancient Greeks this time next year.

That wouldn't surprise me at all.

I can't recall how expensive Greece was during the Drachma years, but I've certainly been to some of the new Eurozone states just before and after they joined, and have noticed how they go from a cheap holiday destination to one charging German prices for stuff.

[AtW]

Perhaps no one will notice... sssshhh.

Bank of England forced to cut UK growth forecast yet again

Recovery might be stalling but at least dirty spekulants attack Greece, Portugal, Ireland which forces them to either get bailout and in any case pay higher interest on their debt.

Naturally if Govt spending is so huge then cutting it will cause drop in GDP, but that part was never proper growth - it was reckless spending based on debt!

[scooterscot]

A good week for bad news lies ahead?

Perhaps no one will notice... sssshhh.

Bank of England forced to cut UK growth forecast yet again

The Bank of England will downgrade Britain's economic growth forecast this week, confirming that the recovery is stalling as the Government's austerity measures take their toll.

[scooterscot]

The battle, will the greeks realise before it's too late that they must recover taxes, respect their land or shall they just toss it all up in the air and default?

[russell]

"SPIEGEL ONLINE has obtained information from German government sources knowledgeable of the situation in Athens indicating.."

In other words, bulltulip.

[ThomasSoerensen]

Seems like it will be cheap to go on holiday to see the masterpieces of the ancient Greeks this time next year.

[TykeMerc]

Exactly. Then what?

the Greeks go ballistic and hang their politicians for treason.

Can we arrange that for the UK? It could be applied to all politicians past and present to ensure fairness.

There are enough lampposts around for the requirement and there's bound to be plenty of piano wire available.

[scooterscot]

They can't leave it because they have nowhere to go.

Exactly. Then what?

The rest of the EU takes control of the Greek finances, the Greeks go ballistic and hang their politicians for treason.

[TykeMerc]

They can't leave it because they have nowhere to go.

True, once in a federated currency escape is effectively impossible unless you're one of the really big boys.

[AtW]

Maybe they just want more money?

Of course they want it, and lower interest rates and less demands on reforms.

The answer to such threats (leaving euro zone) by bankrupt countries should be - fine go for it, if anything it would only make euro zone stronger if weak members withdraw their massive liabilities from it.

They'd still have to repay loans made in euros and dollars anyway.