Home » Posts tagged 'greek default'
Tag Archives: greek default
URGENT WARNING: 6 Signs the Great Crash Is Upon Us!
URGENT WARNING: 6 Signs the Great Crash Is Upon Us!
The Greek default proves that all this endless quantitative easing idiocy couldn’t live up to the promises. It has proved unable to create sustainable long-term recoveries in highly indebted developed countries with poor demographic trends.
The Greek parliament caved into totally repulsive demands, as I said on Monday that it would. They did it out of stark fear of the chaos a Grexit would bring before free market forces resolved their trade and budget imbalances.
I don’t believe they did the right thing. From the looks of the discontent on the ground, many Greeks don’t either. Be that as it may, this can has been kicked just a little further down the road, yet again.
But the whole mess made investors nervous. As did the recent collapse of China’s stock market which just added to the growing concerns.
Investors are right to worry. I’ve been saying for years that the greatest trigger would be the bursting of the massive, unprecedented China bubble.
How can it not?!
Its stock market soared 159% in less than a year. It gained 30% in justtwo months!
Then its stocks took a nose dive, losing 35% in less than 30 days.
Understand that if China’s stock market had lost just 20%, it would have meant nothing. But, as I’ve always said, a drop of 30% to 40% in short order is a clear sign of a first wave down in a major bust. That’s why I’m always telling you to rather be safe than sorry. If you don’t follow a reliable, proven investment strategy – like any of our premium research services, from Boom & Bust, Cycle 9 Alert, Max Profit Alert, BioTech Intel Trader, Triple Play Strategy and Dent Digest Trader – waiting passively for that extra 1% or even 5% is like playing Russian Roulette.
…click on the above link to read the rest of the article…
Schäuble Warns of “Sudden” Greek Default
Schäuble Warns of “Sudden” Greek Default
The governments of Greece – new and old – screwed up. Other debt-sinner countries are able to borrow at near-zero or negative interest rates, simply taking money from investors with a promise to return it on a given day in the future if investors give it new money to do so. These investors, it must be said, had their brains washed by the ECB and other central banks in order to allow this to happen. But the governments of Greece somehow missed that gravy train.
Now, no one wants to lend Greece money at negative interest rates, least of all the Greeks themselves, who know their governments better than anyone else on the planet and have less trust in it than anyone else on the planet: they’re yanking their euros out of their banks even as the ECB is propping them up with fresh euros that ultimately belong to taxpayers elsewhere.
This weekend, representatives of the “institutions” – the unmentionable “Troika” – are trying the hash out a reform package with the new team from Greece that does not include Finance Minister Yanis Varoufakis, who’d been shoved aside. On Monday, the finance ministers of the Eurogroup will meet in Brussels.
Without an agreement on the implementation of the reforms, Greece won’t get the outstanding relief funds of €7.2 billion. And then what? The government has practically no funds left. Time is running out. Monday is it. The Big Day. Again.
“I don’t see that everything will be solved by then,” German Finance Minister Wolfgang Schäuble said in an interview in the Sunday edition of the Frankfurter Allgemeine Zeitung, one of Germany’s largest papers, throwing cold water on any hopes. He doubted that the Greek government even knew what exactly was going on in its finances.
…click on the above link to read the rest of the article…
As Greek Default Fears Return, Government Considers “Borrowing” Pensions To Repay IMF
As Greek Default Fears Return, Government Considers “Borrowing” Pensions To Repay IMF
Greek short-term default risk jumped over 300bps today putting the odds of a restructuring at 50-50 within the next year as the warnings we issued last week with regard Greece’s imminent default on its IMF loan loom. Seeking to reassure its lenders (and avoid yet more capital flight), Reuters reports the Greek government said it was “exploring solutions,” including delaying payments to suppliers or try to raise up to 3 billion euros by borrowing from state entities such as pension funds.
As Reuters reports, Athens is running out of options to fund itself despite striking a deal with the euro zone in February to extend its bailout by four months. Faced with a steep fall in revenues, it is expected to run out of cash by the end of March, possibly sooner.
“The Greek government has been exploring solutions … to ensure there won’t be a single problem with repaying the IMF loan, or its funding obligations in March,” Government Spokesman Gabriel Sakellaridis told Greek radio.So far, Athens’s other funding options have stumbled upon problems. Transferring 1.9 billion euros worth of profits the European Central Bank made on buying Greek bonds will not be allowed until Greece has completed promised reforms.
…click on the above link to read the rest of the article…
