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EU central bankers ponder Greece euro exit

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  • #46
    Originally posted by WarriorPrincess View Post
    Oh, man. What a mess! For the financially-intelligent, please forgive me, but I am hopelessly stupid when it comes to economics. For those who understand issues like these, what will all this mean as far as the possibility of Greece leaving the EU is concerned? Will this turn of events accelerate that process in any way?
    Yes it certainly can expedite the process of a Greek exit imo. A banking system without liquidity faces a credit crunch and where there are insufficient monetary flows, there is a collapse in economic activity. That’s the way I see it anyway. But I’ve also heard that the ECB may step up its support to Greek banks, but how far and wide they are prepared to support the failing Greek banking system is to be seen.

    Originally posted by Joseph The Carpenter View Post
    It does look like we will be here to see a one world currency



    or maybe not

    Lately I been thinking (and not suggesting any time frame here) it could be like we’re on a plane that is struggling and then loses control - it begins its plunge to the earth and you hear those final fatal words: ‘Brace! We’re gonna crash!’ But just before the crash, we are ejected from the plane (ie raptured from the world).

    The world then faces its financial and economic collapse, tragic prophetic wars, a surreal disappearance of millions of people from the planet, and a charismatic European leader emerge on the world political platform with grand promises of a brand new world in the making. And so begins the trib period.
    sigpic

    Luke 21:28

    "Now when these things begin to happen, look up and lift up your heads, because your redemption draws near"

    Comment


    • #47
      What will the ECB do next

      I am still waiting for the ECB (European Central Bank) to print $$$ another trillion and then another 600 Billion in possible Derivative exposure.

      They will have to call it something like the EU Relief and restitution program.

      The problem is if Greece leaving the euro opens Pandora's box to the 4 quardrillion in derivatives world wide, they will have to come up with a new name like the world debt jubilee and restoration program.

      They will keep printing until all money is worthless and they can start over.

      Comment


      • #48
        Originally posted by PaulG View Post
        The problem is if Greece leaving the euro opens Pandora's box to the 4 quardrillion in derivatives world wide, they will have to come up with a new name like the world debt jubilee and restoration program.
        Yes but I see that as being tantamount to collapse / reset. A world debt jubilee is something that could only occur following a major meltdown imo, with major disruption to give cause and justification for such action, not a program to relieve struggling debt holders. Any worldwide debt jubilee would also likely be implemented by the anti-christ.
        sigpic

        Luke 21:28

        "Now when these things begin to happen, look up and lift up your heads, because your redemption draws near"

        Comment


        • #49
          The real questions are:
          1. How long before this leads to violence not only in Greece but throughout Europe?
          2. Funny that while this is happening the whole Debt Ceiling thing is being brought up again here in the USA.
          3. WHy is the US media ignoring this story when it has enormous ramifications for the whole world. Do they realize that the day Greece leaves the EU and unrest begins, our markets will plummet about 5-700 points?

          Comment


          • #50
            Steve you could be right on that, makes sense.

            Comment


            • #51
              The people of Greece will have the final say apparently, they have withdrawn upawards of a billion euros this week from their bank accounts, ye good olde fashioned bank run that sounds like to me.

              That kind of liquidity being removed so speedily allied to everything else that's going on with the austerity measures and the failed election, I am surprised they haven't done a complete meltdown this week.

              The domino is seriously wobbling and one more issue and its gonna topple, right into Spain, then Portugal then Ireland who are voting on their budget this week also....

              Stand by for blast off in Euro land in the next 2 months I would say.

              Comment


              • #52
                Then another few trillion to Spain and Italy, Portugal as well.

                They will just keep printing, nothing else they can do.

                Then come the bank runs and spending of money as the people of europe begin to take their money out to spend before it becomes worthless, then hyper-inflation.

                Then a reset, as Steve said could be a nice layup for the AC to finish off and set up his program.

                Comment


                • #53
                  I repeat: what a mess! I'll just be sooooooo glad when the Tribulation's over and we're in the MK and all this sorrow and fear and anger in this evil old world is all behind us!!! Anyway, thanks for answering my questions, $teve. Forgive the change of subject, but I've been wanting to ask you for some time now (out of curiosity, that is). Why do you use the dollar sign for the "S" in your RR name here? (That is, if you don't mind my asking.)

                  Comment


                  • #54
                    Originally posted by WarriorPrincess View Post
                    I repeat: what a mess! I'll just be sooooooo glad when the Tribulation's over and we're in the MK and all this sorrow and fear and anger in this evil old world is all behind us!!! Anyway, thanks for answering my questions, $teve. Forgive the change of subject, but I've been wanting to ask you for some time now (out of curiosity, that is). Why do you use the dollar sign for the "S" in your RR name here? (That is, if you don't mind my asking.)
                    The only reason I used the $ sign in my name is because Steve was already taken. My creative ability to think up board names is 0 so figured my given name with a $ is about as imaginative as I can get.
                    sigpic

                    Luke 21:28

                    "Now when these things begin to happen, look up and lift up your heads, because your redemption draws near"

                    Comment


                    • #55
                      Originally posted by $teve View Post
                      The only reason I used the $ sign in my name is because Steve was already taken. My creative ability to think up board names is 0 so figured my given name with a $ is about as imaginative as I can get.
                      The $ has proven to be quite appropriate, since you often provide us with the latest economic stories!
                      "Jesus said to them all: "If anyone would come after me, he must deny himself and take up his cross daily and follow me. For whoever wants to save his life will lose it, but whoever loses his life for me will save it."

                      — Luke 9:23-24 (NIV)

                      Comment


                      • #56
                        Originally posted by $teve View Post
                        The only reason I used the $ sign in my name is because Steve was already taken. My creative ability to think up board names is 0 so figured my given name with a $ is about as imaginative as I can get.
                        Actually, I think that WAS pretty creative!

                        Comment


                        • #57
                          Originally posted by God'sGraceInMe View Post
                          The $ has proven to be quite appropriate, since you often provide us with the latest economic stories!
                          And since he also provides economic dummies like me with explanations for what all's going on in more laymen's terms.

                          Comment


                          • #58
                            I read laymen's as Lehmans!

                            Wonder why!


                            Zeti Says Greek Euro Exit Would Have ‘Unimaginable’ Consequences
                            By Haslinda Amin and Elffie Chew
                            May 17, 2012 10:57 AM GMT+1000
                            Bloomberg


                            Malaysia’s central bank Governor Zeti Akhtar Aziz warned that Greece exiting the euro would have “unimaginable” consequences for Europe and that she expects a solution will be reached to prevent a departure.

                            “The consequences for that to happen I believe will be unimaginable for Europe, therefore a solution has to be found to address the situation,” Zeti, 64, said in an interview with Bloomberg Television in Istanbul yesterday. “I believe that such a solution can be found.”

                            “The worst-case scenario is what we saw in Asia when one economy collapses, the market usually goes on to focus on the next one, and there will be contagion that will affect different countries probably that don’t deserve those kinds of consequences,” Zeti said. “This is what would be described as unimaginable.”
                            The 'what we saw in Asia' is referring to the Asian currency crisis back in the late 90s.

                            http://www.bloomberg.com/news/2012-0...sequences.html

                            Video here: http://www.bloomberg.com/video/92829991/
                            sigpic

                            Luke 21:28

                            "Now when these things begin to happen, look up and lift up your heads, because your redemption draws near"

                            Comment


                            • #59
                              Euro crisis ensnares Spain
                              By Philip Aldrick, Economics Editor, Fiona Govan
                              10:00PM BST 17 May 2012

                              Spain moved back into the eye of the eurozone storm on Thursday, as the country’s borrowing costs rocketed to unsustainable levels and the country's banking sector was hit by mass downgrades.
                              Earlier in the day, shares in Bankia, the country’s fourth biggest bank, plunged by as much as 29pc amid reports that depositors had pulled out €1bn in the past week.
                              In Spain, Nicholas Spiro, managing director at Spiro Strategy, said the high cost of the Madrid bond auction was evidence that “'break-up contagion’ is seeping into Spanish yields”. “Make no mistake about it, these are painful auctions for the Treasury,” he added.

                              In a desperate plea to Brussels, Spain’s economy secretary Fernando Jimenez Latorre said: “Spain is making every necessary adjustment to fiscal police, structural reforms and there should be some kind of reaction from the European Central Bank to support us.”
                              The day had already begun badly with confirmation that Spain was back in recession, shrinking 0.3pc in the first three months of the year.

                              As the crisis in the euro periphery spiralled out of control, divisions at its core deepened further. Pierre Moscovici, France’s newly-appointed finance minister, reiterated that the fiscal pact “will not be ratified as it stands” in the face of German Finance Minister Wolfgang Schaeuble’s call “to create a political union now”.

                              David Cameron also demanded urgent action by Europe’s leaders for closer integration to spare the world economy from disaster
                              ahead of crunch talks at the G8 meeting today in Camp David.

                              With the odds on Greece leaving the euro shortening, economists warned a messy exit could cost the eurozone up to $1trillion (£630bn). Even the International Monetary Fund could be at risk of losing its bail-out contributions.

                              Fabrice Montagne at Barclays Capital said: “Even though the IMF prides itself on never having made any losses on a programme, a Greek exit would certainly challenge this record.”
                              http://www.telegraph.co.uk/finance/e...res-Spain.html

                              It's the contagion that is the far bigger concern. Btw note the call for immediate political union^?

                              And as the article above cites elsewhere, Moody's have downgraded a number of Spanish banks.

                              Moody's downgrades Spanish banks

                              Moody's has cut the ratings of 16 Spanish banks, and Santander UK.
                              Moody's Investors Service has today downgraded by one to three notches the long-term debt and deposit ratings for 16 Spanish banks and Santander UK PLC, a UK-domiciled subsidiary of Banco Santander (Spain) SA. The rating downgrades primarily reflect the concurrent downgrades of most of these banks' standalone credit assessments, and in five cases also Moody's assessment that the Spanish government's ability to provide support to the banks has reduced.
                              http://www.telegraph.co.uk/finance/f...t-in-full.html
                              sigpic

                              Luke 21:28

                              "Now when these things begin to happen, look up and lift up your heads, because your redemption draws near"

                              Comment


                              • #60
                                EC and ECB working on emegency plans for Greek euro exit, says trade commissioner Karel De Gucht
                                By Telegraph staff
                                10:55AM BST 18 May 2012

                                The European Commission and the European Central Bank are working on an emergency scenario in case Greece has to leave the eurozone, EU trade commissioner Karel De Gucht has said.

                                It is the first time an EU official has confirmed the existence of contingencies being taken for a possible Greek exit from the currency bloc. Speculation has been rife about such plans, but their existence has not been confirmed before.

                                "A year and a half ago there may have been the danger of a domino effect," Mr De Gucht said in an interview with the Belgium's Dutch-language newspaper De Standaard.

                                "But today there are, both within the European Central Bank and the European Commission, services that are working on emergency scenarios in case Greece doesn't make it."

                                Meanwhile, David Cameron has warned that the European debt crisis could "get a lot worse" unless decisive action is taken, and defended the Governement's austerity plans.

                                The Prime Minister told ITV's Daybreak: “These are very difficult economic times and what’s happening in the eurozone is truly worrying. If things go badly wrong in the eurozone that affects us.”
                                http://www.telegraph.co.uk/finance/f...-De-Gucht.html

                                So 'a year and a half ago there may have been the danger of a domino effect' and today there are 'services that are working on emergency scenarios in case Greece doesn't make it.' Well that sounds like a concrete plan if I ever heard one /sarc. But the comments will probably be sufficient to boost the stock market casino.
                                sigpic

                                Luke 21:28

                                "Now when these things begin to happen, look up and lift up your heads, because your redemption draws near"

                                Comment

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