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Greece

Community Veteran
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Registered: 02-08-2007

Greece

Looks like we are in for more of a rough financial time in the near future as it's unlikely Greece will get another bail out and even if it does this will only be a short term measure.
If it defaults on it's debt France, Germany & the UK will suffer losses of billons of pounds and exports from the UK to the EC would likely nosedive.
Hopefully there is some solution on the horizon but whatever it is I guess it will inflict more financial pain on the rest of us.
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Community Veteran
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Registered: 24-09-2008

Re: Greece

Isn't it blackmail? Hasn't the Greek finance minister said "Either bail us out again or we will default on our current debt"?
Don't UK Pensions funds invested in Greek Bonds tied to Greek Debt?
Going to be messy
Community Veteran
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Re: Greece

France and Germany are major holders of Greek bonds.  If Greece default then France and Germany will have problems with Sovereign debt which could affect us all as the UK are holders of French and German bonds. The domino effect Sad
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Re: Greece

Quote from: artmo
France and Germany are major holders of Greek bonds. 

But French and German banks took out insurance policies against a Greek default with UK Banks, very bad news for the UK.
CapNcaveman
Grafter
Posts: 66
Registered: 18-01-2009

Re: Greece

Ha, yeah not good for all of us..bread lines will be forming like the last great depression I do think..so it's gonna be bye bye all paid bills like PN's if this is the case..IMHO, I believe democracy may just crumble (not here for a fight)
Community Veteran
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Re: Greece

We live in interesting times !
nadger
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Re: Greece

Reading this would suggest that Greece's credit rating is really dodgy and some institutions will no longer be allowed to hold their bonds so will dump them on the market.
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Re: Greece

Interesting essay by a Greek living in the UK
But they cannot get away from the fact that the Greek Government borrowed a shed load of cash and spent it on the 2004 Olympics
Community Veteran
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Re: Greece

I thought this quote was interesting -
Quote
UK Conservative MEP Daniel Hannan said the bailout would not help the people of Greece: "This is not assistance for Greece, it's not how anyone there sees it. They understand perfectly well what the bail-out means, which is that the money will go to European bankers and bondholders, but the repayment will come from Greek taxpayers. So far from being helped, Greece is being sacrificed to save the euro."

from "Greece: Athens faces moment of truth" - http://www.bbc.co.uk/news/business-13850580
Community Veteran
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Re: Greece

Quote from: journeys
But French and German banks took out insurance policies against a Greek default with UK Banks, very bad news for the UK.

I haven't seen this statement before and find it hard to believe.  Where does it come from?
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Re: Greece

Quote from: artmo
I haven't seen this statement before and find it hard to believe.  Where does it come from?

Heard it on BBC world at one - Radio 4 - with Martha Kearney.  Statement was made by Erik Britton ex-Bank of England economist now of "Fathom Consulting" about 25 minutes into Broadcast (Podcast available at http://www.bbc.co.uk/iplayer/console/b011zmqc).
On "Listen again" he also mentions the US were also holders of insurances against Greek default, which I didn't pick up the first time around.
Community Veteran
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Re: Greece

An interesting item on BBC News tonight by Robert Peston.  According to him France and Germany hold 70% of the Greek debt with the Greek banks holding around 25%. He states we have minimal direct risk but would get caught up in any effect on the euro caused by the problem.
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Re: Greece

Community Veteran
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Re: Greece

Yes.  This is covered in depth on Bloomberg.  The BBC report clearly states our exposure in a worst case scenario is £9Bn against £35Bn for France and £21Bn for Germany. More worrying is the knock-on effect it would have on the whole EU and the euro in particular. 
The Greeks could take a holiday from the eurozone which could help steady the situation.  This would mean they would go back to the drachma which would be fixed at 1euro to 1 drachma. This would allow them to follow their own course including devaluation.
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Re: Greece

Greece is the word:
They got bills, they're multiplying, and they're losing control....
Will Moderate For Thanks