Big Fat Greek problem

[badger]

I have tried to keep up with it, but perhaps the South Oval can shed some light on how Greece is single-handedly ruining the world's economy?*

* I base this on the fact that even EU countries that are struggling are going to take on debt to bail them out and the U.S. stock market plunged 900 points on worries over Greece

[JohnnyMack]

The stock market went down like STEP at a tailgate.

[Flagstaffsooner]

Because of the Euro and the EEC. If Greece goes down Europe goes down.
Too much national debt. When the USA goes down because of barry obama soetoro's irresponsible deficet spending, the world goes into a new Dark Age.

[badger]

It just amazes me how Greece could cause such concern worldwide. I know they're famous and they started the Olympics and all, but c'mon!

I heard that the root of their problems resembled California's financial issues - too much spending, too much borrowing, leading to extremely crappy credit leading to extremely cranky people putting up with extremely high concessions to get out of extremely high debt.

Three people died in protests over these proposed cuts in order to receive EU bailouts. It's bad... but I still can't believe that little Greece caused all this commotion.

[NormanPride]

Olives taste nasty, so their only export sucks.

[Boomer.....]

Why do you hate the Greek House?

[homerSimpsonsBrain]

I've heard its really just the trigger the markets have been waiting for to kick off a correction. Apparently those in the know (not me) say we're overdue for a 10% correction based on the recent run up in stock prices.

I guess the theory is that if the Eurozone cant control the debt Greece has and they ultimately default, then they'll also have problem with Portugal, Spain, Italy, and Ireland (the other Eurozone hogs). In the long run that will kill the recent recovery, at least in Europe, and thus slow our economy.

On a side note, if you really want to see socialism gone horribly wrong, Greece is apparently a pretty good example. Everyone and their dog with their hand in the till but nobody willing to pay for anything.




Many employees were paid as though they'd worked a 14-month year, instead of 12. That extra money gave many Greeks a road to early retirement, for some even in their 50s.

And tax evasion was not only accepted but embraced by much of the population

[BillyBall]

While analysts have stressed that Greece is by far the worst fiscal offender in Southern Europe, with its wide budget gap, weak internal controls and inaccurate financial reports, there have been signs this week that Portugal is being swept up in the panic. Yields on 10-year Portuguese bonds rose above 6% this week and were at 5.91% Thursday.

While that doesn’t approach the 11% yield on Greek bonds, it means Portugal is paying more than twice as much as Germany to borrow money for a decade.

Good luck with that... I wouldn't be shocked if fiscally stronger nations like Germany and France decided to pick up their ball and go home.

[badger]

Much like Cali, I am really surprised when places that have built-in tourist traps can have such financial issues

[tommieharris91]

Heh. (http://www.cnbc.com/id/36999483)

This probably accounts for like 90% of the plunge today. People are still worrying about Greece, though.

[BillyBall]

Heh. (http://www.cnbc.com/id/36999483)

This probably accounts for like 90% of the plunge today. People are still worrying about Greece, though.

Yeah, this definitely didn't help


The president of the central bank, Jean-Claude Trichet, said the subject of a drastic move to reassure markets, like buying government bonds directly, did not even come up at the bank’s regular monthly meeting Thursday, which was held in Lisbon.

[homerSimpsonsBrain]

Heh. (http://www.cnbc.com/id/36999483)

This probably accounts for like 90% of the plunge today. People are still worrying about Greece, though.

Boy thats a real confidence builder in electronic markets. Any bets on the offending trader super-sizing your frys by the end of the week?

[olevetonahill]

So whats gonna happen when WE caint pay the Vig on OUR debt

[NormanPride]

****, can we even do that now?

[royalfan5]

Boy thats a real confidence builder in electronic markets. Any bets on the offending trader super-sizing your frys by the end of the week?

People fat finger stuff semi-regularly, it's only an issue when it trips a bunch of stops in the process.

[olevetonahill]

****, can we even do that now?

Not sure Bro
seems Like we having to Pay interest on the interest we owe .


When we default will there be another World wide Depression ?

[royalfan5]

Not sure Bro
seems Like we having to Pay interest on the interest we owe .


When we default will there be another World wide Depression ?

As long as the dollar is the world reserve currency, we won't default. We might debase the hell out of the dollar, but we won't default.

[olevetonahill]

As long as the dollar is the world reserve currency, we won't default. We might debase the hell out of the dollar, but we won't default.

When ya owe More than ya Got coming in aint Ya Bankrupt ?

[royalfan5]

When ya owe More than ya Got coming in aint Ya Bankrupt ?

Not when you control the printing presses. Everything is priced in dollars. We can print more to meet the specified obligations. Money is a commodity just like oil, corn, and beef. If you can make more easily, it's hard to default on your obligations unless you simply don't deliver. Your commodity might be reduced in value in practical terms, but you aren't in default.

[Bourbon St Sooner]

The Greeks all want to retire at 50 and expect full retirement benefits. And we thought our entitlement culture was out of control.

Actually, nobody gives a rat's *** if Greece goes in the ****ter. It's Spain that's the big domino here. The problem is If Greece defaults then borrowing spreads continue to rise on the other PIIGS and the remaining dominoes are likely to fall, which would freeze credit markets again.

[Jacie]

Strangely enough, because the euro is suffering the dollar is worth more. Closer to home, that means the price of a barrel of crude oil has gone down inspite of any problems a certain oil company is having with some of their GOM wells . . .

[Bourbon St Sooner]

Not when you control the printing presses. Everything is priced in dollars. We can print more to meet the specified obligations. Money is a commodity just like oil, corn, and beef. If you can make more easily, it's hard to default on your obligations unless you simply don't deliver. Your commodity might be reduced in value in practical terms, but you aren't in default.

In that scenario, you pay your debt through inflation which is likely how we'll end up. As long as Europe is in the ****ter though and the rest of the world wants to soak up those excess $, the party (and the printing presses) goes on. Of course, by kicking the can down the road though, the hangover is going to be worse.

[Ike]

So whats gonna happen when WE caint pay the Vig on OUR debt

The vig on what we are borrowing right now is extremely generous for us...

[olevetonahill]

Not when you control the printing presses. Everything is priced in dollars. We can print more to meet the specified obligations. Money is a commodity just like oil, corn, and beef. If you can make more easily, it's hard to default on your obligations unless you simply don't deliver. Your commodity might be reduced in value in practical terms, but you aren't in default.

Ima gonna make OVdollars and Pay my bills with em :D

[Bourbon St Sooner]

Ima gonna make OVdollars and Pay my bills with em :D

Backed by the full faith and credit of OVJ

[olevetonahill]

Backed by the full faith and credit of OVJ

Dayum Skippy
Can some one Change a Million OVdollar bill?

[royalfan5]

In that scenario, you pay your debt through inflation which is likely how we'll end up. As long as Europe is in the ****ter though and the rest of the world wants to soak up those excess $, the party (and the printing presses) goes on. Of course, by kicking the can down the road though, the hangover is going to be worse.

Well yeah, but we can kick the can longer and further than anyone else.

[badger]

The most interesting pro-Greek argument I've heard is that the Greeks want reparations from WW2 from Germany, one of the better-off EU countries. Anti-German arguments contend that Germany owes Greece $70 billion because of the damage done during WW2, including the slaughter of a half-million Greeks, causing irreparable damage to their economy.

I am not certain, but I seem to think that this talk only surfaced when financial issues got bad. I think before recently, the Greeks were just happy getting German tourists to historic sites and any money that Germany agreed to pay for reparations since the 40s.

There is also some bitterness toward other EU countries that are providing loans, accusing them of acting like "vultures" or whatever, saying that these countries that can get loans (because their credit isn't crap like Greece's) will take out loans, then loan money to Greece at a higher interest rate. My first thought: Well, duh.

There is no doubt in my mind that Greece was cheating the EU by taking on more debt than allowed by the EU... I think it has been said that Greeks has 12 percent more debt than revenue, and the max allowed is about 5-6, methinks. My numbers are likely off.

[Crucifax Autumn]

The brewery that makes Samuel Adams had a stock price of ZERO today for a few minutes as did about 10 others at least.

[homerSimpsonsBrain]

People fat finger stuff semi-regularly, it's only an issue when it trips a bunch of stops in the process.

You'd think they would at least popup a confirmation message. "Do you really want to sell a brazillion shares of XYZ".

:D

[Ike]

People fat finger stuff semi-regularly, it's only an issue when it trips a bunch of stops in the process.

Ain't algorithmic trading grand?

[SoonerStormchaser]

Well, the dollar is finally kicking some *** against the Euro and the Pound...so there's something good about it...

[Flagstaffsooner]

Ima gonna make OVdollars and Pay my bills with em :D

I'm rich!
;)
http://blogs.creativeloafing.com/dailyloaf/files/2009/08/toilet-paper1.jpg

[BillyBall]

Well, the dollar is finally kicking some *** against the Euro and the Pound...so there's something good about it...

Which makes are exports less attractive... Hooray!!!!

[NormanPride]

Because America's manufacturing and export base is so powerful now. :D

[BillyBall]

Because America's manufacturing and export base is so powerful now. :D

We are the 3rd largest exporting country in the world, so there is that....

[GottaHavePride]

The brewery that makes Samuel Adams had a stock price of ZERO today for a few minutes as did about 10 others at least.


Really? Damn.

[Frozen Sooner]

I'm good if the dollar stays strong for a couple of months. I'ma be in Switzerland. :D

[BillyBall]

Well, the Swiss Franc and Gold are thought to be safety flights for a vulnerable dollar/Euro/Pound. The Swiss Franc has appreciated against the dollar steadily YTD from $1.03 in January to $1.11 as of yesterday.

[Ike]

Well, the Swiss Franc and Gold are thought to be safety flights for a vulnerable dollar/Euro/Pound. The Swiss Franc has appreciated against the dollar steadily YTD from $1.03 in January to $1.11 as of yesterday.

Time to go cash in the swiss francs I have in a drawer then eh?

[ndpruitt03]

Well, the dollar is finally kicking some *** against the Euro and the Pound...so there's something good about it...

That's not going to last long the way we are spending. I think all paper currency may be in trouble before long.

[tommieharris91]

We are the 3rd largest exporting country in the world, so there is that....

And you better believe those exporters are unhappy about the strong dollar.

[Frozen Sooner]

Ah, dammit.