Can someone please explain the eurodeal?

gailey_2

Basically what I gleam from news is

banks lose 50%greek debt owed.

the money they have 440billion is not enough for their bail out fund.
think they announced extra 1.8 billion on top other day.

But they want to leverage it to 1trillion.
guy on news said its borrowing on top of borrowing
so more debt!
Im just puzzled how they make 1trillion?

surly if they borrow more and no growth means another crisis next year?

yet markets reassured despite no finanace ministers present yesterday
no concrete figures. Are the markets gullible and in denial.
As all i see is plan to extend debt no plan how to increase growth or get to root cause of problem

just baffled how we go from finan bcial armageddon to everythings hunky dorey?

Im skeptical and im not a financial expert.

also most of bailout fund already commiteed to portugal/ireland and greece.

if italy cant sort itself out they havent got enough to bail it out.
was shocked by punchup yesterday in their parliament
berlesconni muppet he is seems only one strong enough to lead his opposition leader said no to 67retirement

Mrs_Bones

From what I can make out, they got this large can put it down on the road, then Sarkozy and Merkel both had a contest to see who could kick it the furthest.

gailey_2

french elections soon not sure when germany is

italy in disaray who knows what will happen there.

TruckerT

The media are doing a very bad job of explaining the situation, and sometimes you have to begin to wonder whether or not they are joined at the hip in a threesome with the world's financiers and politicians

Channel 4 news makes the best effort, IMHO, and I recommend watching every night at 7pm

My own uneducated guess is that the real breakthrough in the last 24 hours is that some banks have agreed to accept a 50% loss on some of their business. That is the sort of thing which I have been waiting to hear, and I hope it is just the beginning of successful goverment pressure on the banks to recognise their responsibilities within the capitalist system

TruckerT

Mr_Mumble

gailey wrote: »

Basically what I gleam from news is

banks lose 50%greek debt owed.

the money they have 440billion is not enough for their bail out fund.
think they announced extra 1.8 billion on top other day.

But they want to leverage it to 1trillion.
guy on news said its borrowing on top of borrowing
so more debt!
Im just puzzled how they make 1trillion?

They borrow more money by issuing EFSF bonds. With EFSF bonds having guarantees from the more solvent European countries (e.g. Germany, Netherlands and France) it makes the cost of lending money to the less solvent (e.g. Greece, Portugal, Spain, Italy, Ireland) cheaper. The creditworthiness of the solvent is being used to help the insolvent. The solvent countries are effectively subsidising the insolvent countries but in a convoluted way (intentionally so as otherwise EU laws would be broken).

gailey_2

Agree always watch channel 4news its the best

like news night but finding bbc quite dramatic and negative right now.

I dont know all very risky

if my mum/sister were say bad with money then i went guarnator for them as they had bad credit rating and they dident pay would be foolish.

my worry is greece /italy will go wrong and
think ireland, portugal and spain fully committed to sorting themselves out

yet we looking to russia and china to bail them out yet moaning they have crap human rights and not legal probably borrowing from the mob what next italy sponsored by the !!!!!!

did anyone see c4news tonight berlesconii eyeing up new danaish leader hes such a card but quite like him:rotfl::rotfl:

lvader

gailey wrote: »

my worry is greece /italy will go wrong and
think ireland, portugal and spain fully committed to sorting themselves out

Italys problems are historical, they have a lot of old debt that is coming to maturity. They have one of the smallest deficits in Europe, thank Berlusconi for that.

nearlynew

What people need to realise is it is not us (as a country) against them (another country).

It is us (ordinary people) against them (the bank and politcians)

Wherever you live the problems are the same. WE are being screwed by their lies and corruption.

lvader

nearlynew wrote: »

What people need to realise is it is not us (as a country) against them (another country).

It is us (ordinary people) against them (the bank and politcians)

Wherever you live the problems are the same. WE are being screwed by their lies and corruption.

Banks are just companies that are trying to make money, they have a legal obligation to do the best they can for the shareholders which in a lot of cases is ordinary people in the form of pensions.

Governments are elected by people, they spend too much money because if they didn't we wouldn't elect them the next time.

So it's our fault.

sheffield_lad

50% hair cut on Greek bonds when if traded on the markets they are only worth 40% of their value, another !!!! up, and another sticking plaster till next time. Any guesses on the new euro crisis meeting as Italy owe almost 2 TRILLION!!

sheffield_lad

and yes the BBC have gone so left wing and pessimistic recently, C4 is currently the best news coverage on the box