Reply to: Greek front-runners vow to stay in euro after elections

[petergriffin]

No hedge fund has been stupid enough to buy into Greek debt.

You're mistaken. They had 14.5 billion euros in March 2012 (source = reuters). Plus all those hedge funds who have been shorting Greece will have to buy at some points if they want to cash in or they'll lose their bets (somebody correct me if I'm wrong on this).

[AtW]

What would I know.

They might act like a reckless hedgefund but as I said technically they are a bank.

This does not mean your suggestion of them putting money into Greek is incorrect - only that they are not a hedge fund.

[minestrone]

Technically speaking JPM is a bank rather than hedge fund ...

What would I know.

[AtW]

I suspect JPM made a terrible decision on holding positions derived from Greece.

Technically speaking JPM is a bank rather than hedge fund ...

[AtW]

No hedge fund has been stupid enough to buy into Greek debt.

"Hedge funds and investors in distressed assets are buying as mutual funds and banks have to sell because of credit downgrades, said Saflekos, a native of the Greek city of Thessaloniki."

Hedge Funds Lured by Greek Housing Debt Paying 22%: Mortgages - 15 Jun 2012

"In the last month or so, hedge funds purchased an estimated 4 billion euros ($5.2 billion) of beaten-down Greek bonds that mature on March 20."

http://dealbook.nytimes.com/2012/01/...ad-greek-debt/

Better check if your new place of work is in it as well

[minestrone]

No hedge fund has been stupid enough to buy into Greek debt.

I suspect JPM made a terrible decision on holding positions derived from Greece.

[BrilloPad]

Some US hedge funds will be hit bad but that's their own problem.

No hedge fund has been stupid enough to buy into Greek debt.

[AtW]

Contradiction alert! WHEN Greece leaves the Euro its good to be initially very bad globally

Why exactly? It would be like amputation - the only concern is about European banks that actually were fooking stupid to buy into Greek debt, that would require local bailouts - it's only fair that each country that supervised those banks do appropriate bailout since they are themselves responsible for allowing banks to buy that tulip debt.

Some US hedge funds will be hit bad but that's their own problem.

The real problem is that there is no mechanism how to kick Greece from euro unless they themselves want to do that but nobody serious is as fooking stupid as that in Greece.

[BrilloPad]

So they default then, stupid investors into Greek bonds will rightfully be parted with their money.

Respective Govts in Europe will have to bail out their own banks from that.

Greece will still stay in euro zone.

I think that's most likely, however even if they drop out from eurozone it would be better for eurozone rather than Greek people. Euro would be better off without Greece.

I can't see any mechanism how they can leave it unless their own Govt makes the move - they are far more likely to default on debts.

Contradiction alert! WHEN Greece leaves the Euro its good to be initially very bad globally - until ECB starts printing money. That will kick the can down the road for another few months. Then Greece will recover and the PIIS will wonder why they are still in the Euro.

[russell]

Do you believe that Greece will still be using the Euro in 5 years?

Yes, there will be a move toward political union.

[AtW]

Do you believe that Greece will still be using the Euro in 5 years?

I think that's most likely, however even if they drop out from eurozone it would be better for eurozone rather than Greek people. Euro would be better off without Greece.

I can't see any mechanism how they can leave it unless their own Govt makes the move - they are far more likely to default on debts.

[BrilloPad]

If only the Greeks voted for BrilloPad party with attractive benefits on offer such as hyperinflation due to pants local currency

Do you believe that Greece will still be using the Euro in 5 years?

[AtW]

If only the Greeks voted for BrilloPad party with attractive benefits on offer such as hyperinflation due to pants local currency

[BrilloPad]

Greece will still stay in euro zone.

Do you believe that Greece will still be using the Euro in 5 years?

[russell]

Looks like the pro bailout will form a government, but they will probably negotiate the terms. This means Greece will be in the Euro for the forceable future.