Greece...

wotsthat

Generali wrote: »

What should have happened in the first instance is that the IMF should have been called in, Greece reverted to the Drachma or printed Euro denominated promissary notes so she could recapitalise her banking system or simply Nationalise it, agree a haircut with the IMF with the IMF providing rolling credit facilities to the Greek Government in return for preferred creditor status.

I have been pretty consistent about this: Greece can't pay her debts because she owes too much. It's not that hard to understand. Go to the DFW board to see what happens when you exceed your capacity to service your debts.

The IMF were involved from the start and were lending money to Greece on much less generous terms than the other creditors.

Alphaville have a decent article here on the IMF report - I think the IMF are being accused of having a brass neck.

wotsthat

remorseless wrote: »

Would default even be an option? Then what?

For a multitude of reasons pretty much everyone is agreeing the Greek debt is unsustainable. If creditors won't reduce the debt and/ or make the conditions more generous to convert unsustainable debt into sustainable debt then surely default is the only option.

Then they proceed as per Generali's post (1900).

Despite it all I'd expect European nations to be more generous in providing real money in the form of humanitarian aid than they have been in extending terms to loans which they know aren't going to be repaid anyway.

kabayiri

Perhaps all the banking consultants; accountants; brokers; advisers who arranged all these loans to Greece could donate their commission and fees to the Greek people?

Ha! What am I saying? No chance.

remorseless

wotsthat wrote: »

For a multitude of reasons pretty much everyone is agreeing the Greek debt is unsustainable. If creditors won't reduce the debt and/ or make the conditions more generous to convert unsustainable debt into sustainable debt then surely default is the only option.

Then they proceed as per Generali's post (1900).

Despite it all I'd expect European nations to be more generous in providing real money in the form of humanitarian aid than they have been in extending terms to loans which they know aren't going to be repaid anyway.

though they don't want to print their own drachma!!!!!!!

Why would a country with worse condition help another one with better condition and with the current set up?

I don't understand why Italy is sooooo keen to assist Greece, when it has like 5mil people living on the poverty line for example...

purch

remorseless wrote: »

I don't understand why Italy is sooooo keen to assist Greece, when it has like 5mil people living on the poverty line for example...

Dominos (not the pizza)

wotsthat

remorseless wrote: »

though they don't want to print their own drachma!!!!!!!

I don't want the summer to end.

remorseless

wotsthat wrote: »

I don't want the summer to end.

Don't we all?!

...it's almost painful to watch!!!!!

enthusiasticsaver

remorseless wrote: »

though they don't want to print their own drachma!!!!!!!

Why would a country with worse condition help another one with better condition and with the current set up?

I don't understand why Italy is sooooo keen to assist Greece, when it has like 5mil people living on the poverty line for example...

Italy and France are the most keen countries to keep Greece in the Euro probably because they know that their finances are not much better than Greece and if the Eurozone lets one country go there is a precedent for another one. Watch the Euro implode then.

CLAPTON

wotsthat wrote: »

For a multitude of reasons pretty much everyone is agreeing the Greek debt is unsustainable. If creditors won't reduce the debt and/ or make the conditions more generous to convert unsustainable debt into sustainable debt then surely default is the only option.

Then they proceed as per Generali's post (1900).

Despite it all I'd expect European nations to be more generous in providing real money in the form of humanitarian aid than they have been in extending terms to loans which they know aren't going to be repaid anyway.

Greek debt is unpayable and so won't be repaid.

They will default in fact although not necessarily in EU speak.

However, it is also true, that even with zero debt their society is bankrupt, corrupt and can't continue without foreign subsidies.

Better to speak in reasonably understandable English.

zagubov

enthusiasticsaver wrote: »

Other non EZ countries along with UK like Denmark, the Netherlands and Switzerland are saying they will not contribute to bail out fund. Does anyone else think this deal on Sunday is dead in the water?

Not sure how it's any non-Eurozone country's concern. And certainly not Switzerland who aren't in the eurozone, EU or even the EEA.