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Greece wants debt default guarantee
European Voice ^ | 02/25/10 | Simon Taylor

Posted on 02/24/2010 11:39:45 PM PST by TigerLikesRooster

Greece wants debt default guarantee

By Simon Taylor

25.02.2010 / 05:19 CET

Greece wants guarantees from other EU member states that they will not let the country default on its debt.

The Greek government is looking for an explicit guarantee from other eurozone governments that they would not allow it to default on its debts.

Greece believes that such a guarantee would help lower the cost of loans, so helping it meet its deficit reduction plans.

The Greek government needs to borrow €20 billion from the money markets in April and May to replace existing bonds that are maturing. But Greek governments bonds have to pay a yield of more than 6.54% to attract investors because of fears that Athens could default on its debt. By contrast, German benchmark ten-year bonds pay a much lower coupon of 3.1%.

(Excerpt) Read more at europeanvoice.com ...


TOPICS: Business/Economy; News/Current Events
KEYWORDS: debt; greecedefault

1 posted on 02/24/2010 11:39:45 PM PST by TigerLikesRooster
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To: TigerLikesRooster; PAR35; AndyJackson; Thane_Banquo; nicksaunt; MadLibDisease; happygrl; ...

P!


2 posted on 02/24/2010 11:40:04 PM PST by TigerLikesRooster (LUV DIC -- L,U,V-shaped recession, Depression, Inflation, Collapse)
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To: TigerLikesRooster

Pathetic Begging: coming soon to a nation near you. :)


3 posted on 02/24/2010 11:46:25 PM PST by Tzimisce (No thanks. We have enough government already. - The Tick)
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To: TigerLikesRooster
Greece wants guarantees from other EU member states that they will not let the country default on its debt.”

That's like giving a license to Greece to go out and continue being profligate. What incentive would Greece have to behave, if someone else has already guaranteed that they'd never let Greece default on their loans?

4 posted on 02/24/2010 11:49:08 PM PST by SmokingJoe
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To: TigerLikesRooster

Dear Greece,
Bust the unions. Round up the Socialists and make them go to work and Liberate your private sector. Otherwise go pound sand.


5 posted on 02/24/2010 11:49:36 PM PST by screaminsunshine
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To: TigerLikesRooster

Absent a complete disclosure of exactly how much debt the Greeks have out there (including the stuff they hid with swaps), I don’t think anyone in the Euro-zone is going to take them up on this deal.

There are two huge rubs in this whole Greek debt issue:

1. The domino situation: while Greece is corrupt as hell, and has been free-spending their way into socialist collapse, they’re only the thin leading edge of a trifecta of similar economic collapse. The Italian situation is by far worse, and Spain is a dead man walking. If the Eurozone countries bail out or backstop Greece, then how are they going to say “no” to the far larger problems of Italy and Spain? And while the Germans and French could easily backstop Greece, they don’t have the money to backstop all three nations.

2. The fact that Greece (and most likely Italy) used financial engineering to deliberately hide their over-spending and indebtedness from the ECB and fellow Euro members, in direct violation of the Maastrict treaty.

At this point, the most likely outcome I see is that the IMF steps in to backstop Greece, and they impose draconian spending controls as a condition of the bailout/backstop.


6 posted on 02/25/2010 12:01:13 AM PST by NVDave
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To: TigerLikesRooster

Sure. Give Italy and Spain the same, so the rest of Europe can fall with them. [Little irony and sarcasm there.]


7 posted on 02/25/2010 12:22:31 AM PST by familyop (cbt. engr. (cbt), NG, '89-' 96, Duncan Hunter or no-vote.)
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To: familyop
The deadly debt spiral.

yitbos

8 posted on 02/25/2010 12:58:58 AM PST by bruinbirdman ("Those who control language control minds.")
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To: bruinbirdman

Yep—spiralling musical chairs, or something like that.


9 posted on 02/25/2010 1:14:41 AM PST by familyop (cbt. engr. (cbt), NG, '89-' 96, Duncan Hunter or no-vote.)
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To: NVDave

They had strikes across the country yesterday because of the hinted cuts to come. Presently...barely fifty percent of the public agrees with the measures mentioned. That’s not enough to ensure public support. I forecast this current government will fall within 100 days, and the second by the end of 2010. Loaning them money...does nothing in this case.


10 posted on 02/25/2010 3:00:53 AM PST by pepsionice
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To: TigerLikesRooster

Arnold is studying this situation very carefully right now. He knows he’s next in line with his hat out.


11 posted on 02/25/2010 4:25:47 AM PST by Caipirabob (Communists... Socialists... Democrats...Traitors... Who can tell the difference?)
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To: TigerLikesRooster

Maybe Greece should call the shysters advertising all over the radio dial for debt relief— they could cut their debt by 40% or MORE


12 posted on 02/25/2010 5:20:02 AM PST by Pietro ("I am not an idealouge" BHO; "I am not a crook" RMN)
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To: TigerLikesRooster

Deuce of Clubs wants the rest of the house of cards to prop it up.


13 posted on 02/25/2010 5:24:42 AM PST by TADSLOS (Tea Party. We are the party of NO! NO to more government! NO to more spending! NO to more taxation!)
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To: TigerLikesRooster

A bailout.
So countries that know how to balance their budget will be giving money to a country that doesn’t.


14 posted on 02/25/2010 5:38:03 AM PST by Leftism is Mentally Deranged
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To: Leftism is Mentally Deranged
This is N. Korea style blackmail, “Feed me or I will blow up the whole neighborhood.” :-)
15 posted on 02/25/2010 6:12:52 AM PST by TigerLikesRooster (LUV DIC -- L,U,V-shaped recession, Depression, Inflation, Collapse)
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