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Major - Greek default needed

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    Major - Greek default needed

    Former Prime Minister Sir John Major has told the BBC that European banks need to recapitalise and "Greece needs to default" on its debts, to help bring an end to the eurozone debt crisis.

    He said it would be "catastrophic" if the country defaulted before the banks had enough money to cover their losses.

    Sir John also backed the decision by the Bank of England last week to pump more money into the UK economy.

    He said the UK faced a "very, very serious" financial crisis.

    Last Thursday, the Bank announced it would begin a fresh round of quantitative easing by injecting another £75bn into the economy, having pumped £200bn in during its first round.

    Source: BBC News - Greece must default, says former PM Sir John Major

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    Hmm, I like Major but him saying that with Greece default somehow problem is solved are just wishful thinking.

    #2
    The market was already pricing in a >50% chance that Greece will default.
    "A life, Jimmy, you know what that is? It’s the s*** that happens while you’re waiting for moments that never come." -- Lester Freamon

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      #3
      Originally posted by Freamon View Post
      The market was already pricing in a >50% chance that Greece will default.
      KUATB
      Knock first as I might be balancing my chakras.

      Comment


        #4
        What then, a Greek default every year? And does this the open the way for Spain and Italy, etc to have some of the action too?

        How much will the German tax payer stand before they start getting a bit goosesteppy?

        p.s. Sainbury are selling 1.5 kg flour for 52p. The self-raising stuff is for making cakes and the plain stuff is for making bread.

        Comment


          #5
          Originally posted by TimberWolf View Post
          What then, a Greek default every year? And does this the open the way for Spain and Italy, etc to have some of the action too?

          How much will the German tax payer stand before they start getting a bit goosesteppy?

          p.s. Sainbury are selling 1.5 kg flour for 52p. The self-raising stuff is for making cakes and the plain stuff is for making bread.
          Support from the German voter for returning to the Deutsche Mark is at an all time high, and rumours abound about the printing of German Marks already being under way.

          Thanks for the tip about the flour
          Knock first as I might be balancing my chakras.

          Comment


            #6
            Originally posted by suityou01 View Post
            Did you mean to link to a different post?
            "A life, Jimmy, you know what that is? It’s the s*** that happens while you’re waiting for moments that never come." -- Lester Freamon

            Comment


              #7
              Originally posted by TimberWolf View Post
              What then, a Greek default every year?
              Exit from the Euro and a currency devaluation to the point where they can get their economy growing again.

              Originally posted by TimberWolf View Post
              What then, a Greek default every year?
              And does this the open the way for Spain and Italy, etc to have some of the action too?
              Maybe.

              Originally posted by TimberWolf View Post
              What then, a Greek default every year?
              How much will the German tax payer stand before they start getting a bit goosesteppy?
              This is the question all the intelligence agencies and international security community are worrying about.
              "A life, Jimmy, you know what that is? It’s the s*** that happens while you’re waiting for moments that never come." -- Lester Freamon

              Comment


                #8
                Originally posted by Freamon View Post
                Exit from the Euro and a currency devaluation to the point where they can get their economy growing again.
                So all western banks in Germany and France take 100% hit on euro denominated bonds, taxpayers of respective countries will need to bail out their bank and Greece is walking nicely as if nothing happened?

                Like that's going to happen.

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                  #9
                  Originally posted by AtW View Post
                  So all western banks in Germany and France take 100% hit on euro denominated bonds, taxpayers of respective countries will need to bail out their bank and Greece is walking nicely as if nothing happened?

                  Like that's going to happen.
                  It's the only remaining option now that doesn't involve some kind of guns.
                  "A life, Jimmy, you know what that is? It’s the s*** that happens while you’re waiting for moments that never come." -- Lester Freamon

                  Comment


                    #10
                    Originally posted by Freamon View Post
                    It's the only remaining option now that doesn't involve some kind of guns.
                    No, it's not the only option at all - bond holders will have to agree to restructuring and take a 30-50% loss in exchange for guarantees of such loans by countries that can afford to repay the debts. The only question right now is what this %-tage going to be.

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