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Greece on the brink as bond prices tumble

Discussion in 'The Economy' started by Tropo, 10th Apr, 2010.

  1. Tropo

    Tropo Well-Known Member

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    Greece on the brink as bond prices tumble

    GREECE was pushed closer to the edge by a panicky bond market overnight, which rammed up the cost of its borrowing to new highs.
    A hammering of bond prices by investors took the yield on short-term Greek debt as high as 8 per cent at one point, prompting speculation that a rescue might be imminent.
    The volatile bonds movement prompted the European Central Bank to ease the pressure on Greece's troubled domestic lenders, who have seen €8 billion ($11.5bn) flow from their coffers in recent weeks.
    Greece on the brink as bond prices tumble | The Australian
     
  2. Billv

    Billv Getting there

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    There is 1 solution,
    stop paying interest to their EU partners who have been so very supportive (not) ....:eek: :D
     
  3. wdongli

    wdongli Well-Known Member

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    No worry about Greece and EU at moment.

    Germany Said to Accept EU Loan Compromise for Greece (Update1) - BusinessWeek

    At last, a light on Greece crisis which could bring down EU appeared at last. "Germany is prepared to give Greece loans at below-market interest rates, dropping its opposition to subsidies as European finance ministers meet to discuss the terms of a lifeline for the debt-stricken nation," said a EU officer.

    “They have to be given some help from Europe or the IMF at concessional rates,” Soros said. “It is a make or break time for the euro and it’s a question whether the political will to hold Europe together is there or not.”

    Crisis means the pains. It is always not easy to get the money from anyone else. Understand why no one wants to pay too much but good to see the EU and Germany politicians know the domino effects very well.

    It was said more details would be available at 4pm local time which should be 10pm here. Let's see what the details are by then.

    Australia resource boom gets rid off one more global obstacle now.
     
  4. wdongli

    wdongli Well-Known Member

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    Happy Last Resort

    BBC News - Deal reached over Greece debts at Brussels summit

    "DEAL TO HELP GREECE

    1. If Greece cannot borrow from markets the eurozone countries and IMF will provide loans totalling about 22bn euros (£20bn)

    2. IMF will provide one-third of the loans, eurozone the rest

    3. Mechanism is a "last resort" to bail out Greece

    4. Decision to give loans will be based on assessment by European Commission and European Central Bank

    Happy to see this deal.
     
  5. Chris C

    Chris C Well-Known Member

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    This band aid should hold up the EU for the time being!

    The only question now is who the bond vigilantes will eye off next?
     
  6. Billv

    Billv Getting there

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    I've heard that Portugal's credit rating has been downgraded so they would be targeting them soon.

    I saw a chart somewhere showing the debt of various EU countries
    and although other countries have similar debt to Greece (in % of GDP)
    the smaller economies are easier to target.

    Also, once they are targeted, (because of the small size of their economy) they will find it very difficult to turn the situation around
     
  7. Chris C

    Chris C Well-Known Member

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    Yeah but on the flip side small economies are easy to resuce, ala Dubai, Greece, and Portugal would definitely fit in this same category.

    My reckoning is that to really get people thinking "OK bailing out this country is virtually impossible for the EU" there would have to be an attack on an economy that is significantly bigger, like Spain or Italy - alternatively it'd be interesting to see what would happen if the UK came under the spotlight... more QE?