Hungary's IMF revolt augurs ill for Greece

carolt

Ouch.

http://www.telegraph.co.uk/finance/financetopics/financialcrisis/7899304/Hungarys-IMF-revolt-augurs-ill-for-Greece.html

purch

"It is incredible how long Hungary has been struggling to get over its imbalances. It first began austerity measures in 2006, :eek: but four years later is still not out of the crisis and there is massive discontent. The Greek problem is even bigger by any measure, whether budget deficit, current account or public debt," he said.
"Austerity is extremely hard to sell to electorates. The risk is that this moves from a wider financial and economic crisis to a European political crisis as governments are punished by voters."


Ouch x2 !!!!

carolt

Expect a large number of Hungarians to land on our shores soon. If they can afford the fare here.

ILW

Guess well have to reserve a few thousand 5 bed houses in Kensington for them.

Generali

Austerity is extremely hard to sell to electorates.

Ultimately, either as a voter you accept that your Government has to live within your means or the bond market will prove that to you.

worldtraveller

Moody's has cut its rating of Hungarian government debt to junk status.

The ratings agency blamed Hungary's high levels of debt and weak prospects for growth, as well as uncertainty about whether the government can achieve its goals for the economy.

The government said the move by Moody's was part of a series of financial attacks against the country.

Earlier, Standard & Poor's decided not to downgrade Hungary until talks with the EU and IMF had been completed.

BBC News

Currently the yield on Hungary's 10-year bonds is at 9.685%. That compares with near 12% for Portugal and 26% for Greece. Poland is currently at 6.1% and Czech debt at 4.1%. Germany is at 2.2%.

oldvicar

carolt wrote: »

Expect a large number of Hungarians to land on our shores soon. If they can afford the fare here.

Of course they can afford the fare. The streets of Buda and Pest have been teeming with VWs and Audi, and Hugarian homes have been filled with IKEA furnishings, for more than the past decade. Although some may miss seeing the old Trabant (made in Germany - since they made lorries rather than cars in Hungary back then) the Hungarian economy has been flourishing (relative to ours). Our turn to go cap-in-hand to the IMF (again - remember 1976) will come soon enough.

nollag2006

Aaah yes ... carolt

Another one of the bears who finally gave in and bought, never to be heard of again on this forum