2 Trillion (2,000,000,000,000) bailout fund and 50% Greek Haircut - will it work?

The_White_Horse

they spent the cash now they should pay it back. if that puts them in a bad place so be it. its just a lesson for all other public sectors out there not to be so stupid. lets retire at 34, lets have huge salaries and massive pensions, lets collect no tax because we can't be bothered. screw them. pay back every penny or be left to rot. that should be the plan. the first "victim" of the loony left.

Heyman_2

Will we in the UK be presented with a bill for any of this? Can't see anything in the article about it. Obviously we'll be affected no matter what tho....

MacMickster

I can't see how a partial default, as opposed to a full default, helps Greece in any way, nor do I see the German public standing for any deal where German taxpayers will be committed to bailing out holders of Irish, Portugese, Italian and Spanish debt.

This is just more desperate talk as political leaders and the IMF (who ultimately have the interests of the banks at heart) try to find a way to keep the Euro experiment going for a while longer - or at least until they figure out a way of unravelling it in an orderly manner. It also seems that once again they want to prevent the (too big to fail) banks from taking the hit from their poor investments and instead pass that hit onto the taxpayers throughout Europe.

The only realistic way forward for the Greeks is a full default and exit from the Euro. It is no easy option for the average Greek as they will be faced with both runaway inflation and unprecedented levels of unemployment. The rich, however, have had enough time to move their money elsewhere, and will doubtless eventually feed it back into the Greek economy when the situation stabilises.

wotsthat

MacMickster wrote: »

I can't see how a partial default, as opposed to a full default, helps Greece in any way, nor do I see the German public standing for any deal where German taxpayers will be committed to bailing out holders of Irish, Portugese, Italian and Spanish debt.

Maybe with this plan the German government are better able to spin this into a bailout of German banks exposed to Greece rather than a bailout of Greece itself?

It's much the same thing but it's a desparate situation.

wymondham

If you throw enough money at a problem does it go away?

RJP33

Heyman wrote: »

Will we in the UK be presented with a bill for any of this? Can't see anything in the article about it. Obviously we'll be affected no matter what tho....

No since we're fortunately not in the Eurozone (Germany will mind) and you're correct that we'll be impacted regardless.

If the Greeks default it will be chaos regardless of whether they're in the Eurozone or not. If they're not the standard of life will drop dramatically and inflation will rocket overnight.

RJP33

wymondham wrote: »

If you throw enough money at a problem does it go away?

According to Labour yes. Doesn't matter where the money actually goes or whether it's efficient, but if you cut anything it will automatically be worse.

nearlynew

What a market trader thinks about the greek bailout ...

http://www.youtube.com/watch?v=aC19fEqR5bA&feature=player_embedded#!

michaels

I don't normally click youtube links but that one is amusing...:eek:

nearlynew wrote: »

What a market trader thinks about the greek bailout ...

http://www.youtube.com/watch?v=aC19fEqR5bA&feature=player_embedded#!

wymondham

nearlynew wrote: »

What a market trader thinks about the greek bailout ...

http://www.youtube.com/watch?v=aC19fEqR5bA&feature=player_embedded#!

Thats quite a revelation! I'm thinking why are people wasting so much money to repair something that can't be fixed??