Is Greece all sorted now?

worldtraveller

Shocking Breaking News! :eek:

Greece may request an extension to it's austerity plan! Surely not?! :rotfl:

http://www.telegraph.co.uk/finance/financialcrisis/9476417/Greek-PM-Antonis-Samaras-to-ask-Angela-Merkel-and-Francois-Hollande-for-austerity-plan-extension.html

nickj_2

Ronnie_Grimes wrote: »

Greece must pay its next round of bond redemptions on August 20, and over the weekend the IMF stated that they are suspending Greece's future aid tranches due to lack of reform. August 20 might be the most important day of the entire summer

surely that should be "greece will attempt to pay" and fail yet again miserably, as expected ,
as most sane people know , you can't pay off debt with more debt ,

Graham_Devon

worldtraveller wrote: »

Shocking Breaking News! :eek:

Greece may request an extension to it's austerity plan! Surely not?! :rotfl:

http://www.telegraph.co.uk/finance/financialcrisis/9476417/Greek-PM-Antonis-Samaras-to-ask-Angela-Merkel-and-Francois-Hollande-for-austerity-plan-extension.html

Really!? That's quite surprising.

I reckon the next shock will be Merkel stating she WILL be heavy handed and this IS NOT good enough....only to agree to it after 23 summits.

Thrugelmir

Graham_Devon wrote: »

Really!? That's quite surprising.

I reckon the next shock will be Merkel stating she WILL be heavy handed and this IS NOT good enough....only to agree to it after 23 summits.

Default by some one some time is almost envitable. As the amount of collective debt can never be repaid. What must concern the politicians most is the social impact.

Wookster

Thrugelmir wrote: »

Default by some one some time is almost envitable. As the amount of collective debt can never be repaid. What must concern the politicians most is the social impact.

Historically, many much worse things have happened with fewer debt.

Thrugelmir

Wookster wrote: »

Historically, many much worse things have happened with fewer debt.

Old fractures remain skin deep. European history makes life very complex.

Masomnia

It doesn't all need to be repaid, though. There will always be a demand for sovereign debt, from pension funds and cautious investors who want a lower risk investment vehicle. As far as I can tell it isn't a problem if your level of debt is at a level where there is sufficient demand in the market to service it, and the supply of sovereign debt doesn't attract too much money that would go elsewhere.

Mrs_Bones

So what odds are people giving on Greece going bankrupt next week? Will it get a last minute reprieve again and another bailout to tide it over so it can muddle through a bit longer? I'm sure if it was a cat it would have used up all it's lives by now. Personally I don't think the bods at the EU know quite what to do with Greece or what the effects of it leaving will be one way or the other, so the status quo will remain. They'll just hand it enough money to keep it dangling on a piece of string.

Thrugelmir

Mrs_Bones wrote: »

So what odds are people giving on Greece going bankrupt next week?

Greece isn't worth worrying about.

Spain, Portugal, Italy and Ireland would have far greater impact.

Graham_Devon

It's when you read this sort of thing that you wonder how on earth some of the more optimistc can suggest it will all be sorted and were just bumping along the bottom:

Just consider what must be overcome: economic divergence and deepening recessions; irreversible balkanization of the banking system and financial markets; unsustainable debt burdens for public and private agents; daunting growth and balance-sheet costs in countries that pursue internal devaluation and deflation to restore competitiveness; asymmetrical adjustment, with moral-hazard risks in the core and insufficient financing in the periphery fueling incompatible political dynamics; fickle and impatient markets and investors; austerity fatigue in the periphery and bailout fatigue in the core; the absence of conditions for an optimal currency area; and serious difficulties in achieving full fiscal, banking, economic, and political union.