Financial Crisis in Greece

[rosetta]

Besides that, June 15th IS indeed the Day after Tomorrow

[George S.]

just picture that but more like economic ruin.

[Onur]

OK; Greece now officially has the lowest credit rating in the world, which is one step above the rating for bankrupt countries and S&P says that Greece`s outlook is negative, heading towards bankruptcy;

Greece slips further toward default as its credit rating is cut to CCC

Standard & Poor's gives Greek economy the lowest credit rating in the world – and suggests it can only get worse. As Greece's credit rating is revised downward, unions prepare for a general strike on 15 June.

Greece took a step nearer an outright debt default after Standard & Poor's cut its credit rating from B to CCC.

The country is now only two notches away from S&P's benchmark default rating, which would signal it is unable to meet its debts. It is now the lowest rated economy in the world – behind Ecuador, Pakistan and Jamaica. The ratings agency added that the outlook is negative, suggesting another possible downgrade.

Greece's economy is the subject of heated debate in the EU. The bloc is hoping to add further funds to the €110bn (£97bn) already allocated to Greece when finance ministers meet at the end of next week. But wrangling between Germany, France and the European Central Bank has prevented a deal being hammered out.

Politicians in Greece are also at loggerheads, with MPs opposed to the socialist government's public spending cuts and tax rises threatening to veto any deal with Brussels.

The left-leaning Athens administration is also under pressure from unions, which are preparing for a general strike on Wednesday to protest against the likelihood of even more painful cuts as the price of further EU funds.

Before S&P issued its downgrade, the cost of insuring Greek sovereign debt hit a new record high. A credit default swap (CDS) insuring €10m of Greek debt jumped to €1.6m.

European leaders are due to finalise a rescue package for Greece at a Brussels summit on 23 and 24 June. Germany has been pushing for a "soft restructuring", in which the repayment period of some of Greece's outstanding debts are pushed back by several years. It is unclear, though, whether the private investors who hold the debt will agree to such a plan.

Even if agreement can be reached, the credit rating agencies may view the deal as a "technical default" – despite it being billed as a "voluntary reprofiling" – potentially triggering some CDS contracts.

13 June 2011

http://www.guardian.co.uk/business/2...ut?INTCMP=SRCH

[DirtyCodingHabitz]

What an amazing channel that I found on YouTube.
YouTube - ‪Tens Of Thousands Protesting In The Street In Greece‬‏
YouTube - ‪Protesters Surround Parliament In Athens‬‏

[Phoenix]

By all recent accounts, the modern 'greek' state is nearing, quite rapidly I might add, it's 'event horizon' moment....or to put it another way, "the point of no return".

...Bon voyage

[makedonche]

By all recent accounts, the modern 'greek' state is nearing, quite rapidly I might add, it's 'event horizon' moment....or to put it another way, "the point of no return".

...Bon voyage

Phoenix
This might be the appropriate time to give this country a new name, something befitting it's integrity.
Former Bankrupt Republic Of Greece.

[Imagination]

Its the 17th June and I haven't heard of a protest anywhere. And really, the pictures I saw with the tornadoes in Athens or wherever, that's really not much to be happy at or to expect. It's a bit sick actually. The ordinary people have no connection in politics, so please.... and vengeance gets you nowhere anyway.

[Bill77]

Its the 17th June and I haven't heard of a protest anywhere. And really, the pictures I saw with the tornadoes in Athens or wherever, that's really not much to be happy at or to expect. It's a bit sick actually. The ordinary people have no connection in politics, so please.... and vengeance gets you nowhere anyway.

I have no idea what you're on about but since i am here, l love the Location: Zimbabwe that you have under your name lol.

Its a big jump in living standards and stability compared to Greece isn't it. Its like paradise.

[Soldier of Macedon]

Its the 17th June and I haven't heard of a protest anywhere.

I watched over 100,000 people on TV in the centre of Athens protesting. Is Zimbabwe on another planet, or is it just you?

[makedonche]

Its the 17th June and I haven't heard of a protest anywhere. And really, the pictures I saw with the tornadoes in Athens or wherever, that's really not much to be happy at or to expect. It's a bit sick actually. The ordinary people have no connection in politics, so please.... and vengeance gets you nowhere anyway.

Imagination
What a fitting avatar you have! You haven't heard therefore it doesn't exist, good imagination you have. Have you heard about Greece's inability to pay it's debts? Let's establish a starting point for your knowledge here, that way we know where you need help in getting up to speed! So tell us what do you know?

[George S.]

I saw a protest & it was so bad that the greek priimister said if the crowd wants he will resign.How bad does it need be before these greeks start to admit that their country is really rooted.THis clown imagination coming on & he recons he is in zimbabwe what a joke.

[Zarni]

I have a question I hope someone can answer

Why can’t the EU kick Greece out of the European Union, and let the basket case to solve it's own problems and in turn stop asking European Banks and Euro Zone Tax Payers bailing out a small and irrelevant Economy. Is there a constitutional reason or is it because the two masters of Greece, Germany and France rather see Greece exist at all costs.

And one those Greek protesters they are no different then Govt they are protesting against. Greeks willingly didn’t pay Taxes, willingly 9 million odd did not work on the books but choose the black market economy, willingly saw 35 as a retirement age, willingly paid cash in hand bribes all over, willingly uphold the Greek life style their parents taught them as a matter of Fact
Why does Greece deserve to be helped it should be made to pay and lose its Economic Independence and not be allowed to make decisions treated like a nanny State until it awakens from its slumber instead they are moving heaven and Earth to save it

[Onur]

Latest news about Greek economy;


Former US central bank chairman;

default by Greece is “almost certain” and could help drive the U.S. economy into recession.

“The problem you have is that it’s extremely unlikely the political system will work” in a way that solves Greece’s crisis, Greenspan, 85, said in an interview today with Charlie Rose in New York. “The chances of Greece not defaulting are very small.”

The chances of Greece defaulting are “so high that you almost have to say there’s no way out,” said Greenspan, who ran the central bank from 1987 to 2006. That may leave some U.S. banks “up against the wall.”

http://www.bloomberg.com/news/2011-0...greenspan.html

The president of the Eurogroup and former PM of Luxembourg;

"We are playing with fire," he said, adding that in the worst case, ratings agencies could declare a default leading to dire consequences for the currency union.

"Contagion from (any) bankruptcy could reach Portugal and Ireland, and then because of the high debt, Italy and Belgium, even before Spain," Juncker added.

http://www.reuters.com/article/2011/...75H04Y20110618

Brits trying to get away from the mess while they still can;

UK banks have pulled billions of pounds of funding from the eurozone as fears grow about the impact of a “Lehman-style” event connected to a Greek default.

Senior sources have revealed that leading banks, including Barclays and Standard Chartered, have radically reduced the amount of unsecured lending they are prepared to make available to eurozone banks, raising the prospect of a new credit crunch for the European banking system.

Standard Chartered is understood to have withdrawn tens of billions of pounds from the eurozone inter-bank lending market in recent months and cut its overall exposure by two-thirds in the past few weeks as it has become increasingly worried about the finances of other European banks.

Barclays has also cut its exposure in recent months as senior managers have become increasingly concerned about developments among banks with large exposures to the troubled European countries Greece, Ireland, Spain, Italy and Portugal.

http://www.telegraph.co.uk/finance/financialcrisis/8584442/UK-banks-abandon-eurozone-over-Greek-default-fears.html

I don't know about you but this was kinda absurd for me to see this. As you know, Greek PM has appointed a new cabinet two days ago and it looks like all new cabinet members sworn with couple of priests in some kind of ritual to be able to start their duty;
YouTube - ‪Greece brings in new faces in bid to tackle debt‬‏

OK, Greece is not a secular country but do they have to be like a medieval state???!!! So, i wonder what was the chanting for? for a "miracle" to resolve their debt crisis?

I don't know about your countries but the last time we`ve ever seen such a scenery here was about 150 years ago, in the crowning of the last sultan. It`s kinda ridicules to see such a scene in 2011

[rosetta]

Onur,
If you think about it, merely swearing is ridiculous. It seems people like ceremonies.

Zarni,
France and Germany are protecting their own interests (their banks hold an amount of Greek bonds), the idea and future of Eurozone and European Union and of course Greece (in the sense of EU unity). Actually there's no realistic alternative.
Greece is borrowing money with a relatively high interest rate (about 5%) which means that if we don’t default France and Germany will also make some profit.

[George S.]

Rozetta Latest news is i heard about greece is that it is bankrupt & there is a fair chance it will take a few other countries with it.