We’d like to remind Forumites to please avoid political debate on the Forum.
This is to keep it a safe and useful space for MoneySaving discussions. Threads that are – or become – political in nature may be removed in line with the Forum’s rules. Thank you for your understanding.
Debate House Prices
In order to help keep the Forum a useful, safe and friendly place for our users, discussions around non MoneySaving matters are no longer permitted. This includes wider debates about general house prices, the economy and politics. As a result, we have taken the decision to keep this board permanently closed, but it remains viewable for users who may find some useful information in it. Thank you for your understanding.
📨 Have you signed up to the Forum's new Email Digest yet? Get a selection of trending threads sent straight to your inbox daily, weekly or monthly!
Contagion Fear Fueled By Athens Clashes, Portugal
inspector_monkfish
Posts: 9,276 Forumite
14:49 05May10 - Contagion Fear Fueled By Athens Clashes, Portugal
Events are conspiring against European efforts to stem investors' concerns that the Greek debt crisis could escalate and spread to other fiscally-vulnerable government, including Spain and Portugal.
Athens burned again Wednesday, German parliamentary bickering over Greek aid and a Portugal downgrade warning from the Moody's Investor Service ratings agency added to the already dire news.
That combination sent the euro to new 12-month lows of near $1.2800 and put heavy pressure on European bond markets.
Anti-reform protests in Athens Wednesday turned violent when demonstrators and policy exchanged fire bombs and tear gas. Three were killed in a fire bombing attack on a bank by protesters, though it was unclear whether the victims were protesters or bystanders.
The violence came during a massive general strike that paralyzed the country.
The strengthening popular opposition fueled nagging doubts in financial markets that the Greek government can overcome opposition to reforms demanded by the European Union and the International Monetary Fund for a Eur110 billion bailout. Failure to hold to the reform timetable would dry up aid flows.
"Investors are far from convinced that Greece will avoid a debt restructuring," Danske Bank said in a research note. "The sustainability of the public debt schemes in the other southern European countries are also getting increasingly questioned by the market."
A group of German constitutional lawyers and senior economists announced that they will file a constitutional complaint before Germany's highest court on Friday seeking an injunction against Germany's EUR22.4 billion contribution to the Greek bailout.
In the filing, to be followed by a press conference, the plaintiffs claim that the rescue package is in violation of German and EU law.
German opposition to the deal, which Wednesday included more squabbling over details in German parliament, has added to nervousness in financial markets that the plan won't go through, leaving Greece to default and undergo a massive debt restructuring.
Pressing her case in parliament Wednesday, German Chancellor Angela Merkel said that Europe is now at a crossroads with the euro at stake. German and other European governments agreed to the bailout primarily to check the spread of market jitters to other euro-zone countries, which would threaten to split up the euro zone.
Contagion fears received new impetus Wednesday when Moody's said it has placed Portugal's Aa2 government bond rating under review for a possible downgrade.
The agency cited the deterioration of the country's public finances and the long-term economic challenges it faces. Portugal's rating could come down one or two notches, Moody's said.
Events are conspiring against European efforts to stem investors' concerns that the Greek debt crisis could escalate and spread to other fiscally-vulnerable government, including Spain and Portugal.
Athens burned again Wednesday, German parliamentary bickering over Greek aid and a Portugal downgrade warning from the Moody's Investor Service ratings agency added to the already dire news.
That combination sent the euro to new 12-month lows of near $1.2800 and put heavy pressure on European bond markets.
Anti-reform protests in Athens Wednesday turned violent when demonstrators and policy exchanged fire bombs and tear gas. Three were killed in a fire bombing attack on a bank by protesters, though it was unclear whether the victims were protesters or bystanders.
The violence came during a massive general strike that paralyzed the country.
The strengthening popular opposition fueled nagging doubts in financial markets that the Greek government can overcome opposition to reforms demanded by the European Union and the International Monetary Fund for a Eur110 billion bailout. Failure to hold to the reform timetable would dry up aid flows.
"Investors are far from convinced that Greece will avoid a debt restructuring," Danske Bank said in a research note. "The sustainability of the public debt schemes in the other southern European countries are also getting increasingly questioned by the market."
A group of German constitutional lawyers and senior economists announced that they will file a constitutional complaint before Germany's highest court on Friday seeking an injunction against Germany's EUR22.4 billion contribution to the Greek bailout.
In the filing, to be followed by a press conference, the plaintiffs claim that the rescue package is in violation of German and EU law.
German opposition to the deal, which Wednesday included more squabbling over details in German parliament, has added to nervousness in financial markets that the plan won't go through, leaving Greece to default and undergo a massive debt restructuring.
Pressing her case in parliament Wednesday, German Chancellor Angela Merkel said that Europe is now at a crossroads with the euro at stake. German and other European governments agreed to the bailout primarily to check the spread of market jitters to other euro-zone countries, which would threaten to split up the euro zone.
Contagion fears received new impetus Wednesday when Moody's said it has placed Portugal's Aa2 government bond rating under review for a possible downgrade.
The agency cited the deterioration of the country's public finances and the long-term economic challenges it faces. Portugal's rating could come down one or two notches, Moody's said.
Please take the time to have a look around my Daughter's website www.daisypalmertrust.co.uk
(MSE Andrea says ok!)
(MSE Andrea says ok!)
0
Comments
-
There you are then Dr Gloom, you and the rest of your buddies can move to a warmer climate and enjoy what you've all be craving for so long. Complete chaos... but at least you'll be able to afford your mansion, complete with bullet holes, smashed windows and a faint smell of smoke.0
-
Blacklight wrote: »There you are then Dr Gloom, you and the rest of your buddies can move to a warmer climate and enjoy what you've all be craving for so long. Complete chaos... but at least you'll be able to afford your mansion, complete with bullet holes, smashed windows and a faint smell of smoke.
lol
don't shoot the messenger dude!Please take the time to have a look around my Daughter's website www.daisypalmertrust.co.uk
(MSE Andrea says ok!)0 -
Pre the euro Portugal used to devalue the escudo regularly in response to its perennial problems. Now that the currency is the euro and they cannot devalue does this mean that the give in the system will be prices which will fall?The only thing that is constant is change.0
-
prices which will fall?
No, interest rates will rise.I used to think that good grammar is important, but now I know that good wine is importanter.0 -
Are interest rates not set for the whole of the eurozone?
If interest rates do rise will that not have the effect of reducing prices?
I'm going on holiday to Portugal and I'm just looking for some good (for me) newsThe only thing that is constant is change.0 -
Europe’s fiscal crisis could threaten banks in Portugal, Spain, Italy, Ireland and the U.K. as the risk of contagion grows, Moody’s Investors Service said in a report published today.
“Overall, Moody’s notes that each of these countries’ banking systems faces different challenges of different magnitudes, but warns that contagion risk could dilute these differences and impose very real, common threats on all of them,” Moody’s said in the report.
BloombergThere is a pleasure in the pathless woods, There is a rapture on the lonely shore, There is society, where none intrudes, By the deep sea, and music in its roar: I love not man the less, but Nature more...0
This discussion has been closed.
Confirm your email address to Create Threads and Reply
Categories
- All Categories
- 352.2K Banking & Borrowing
- 253.6K Reduce Debt & Boost Income
- 454.3K Spending & Discounts
- 245.3K Work, Benefits & Business
- 600.9K Mortgages, Homes & Bills
- 177.5K Life & Family
- 259.1K Travel & Transport
- 1.5M Hobbies & Leisure
- 16K Discuss & Feedback
- 37.7K Read-Only Boards