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  • Sunday, October 23, 2011, 5:20 AM An EU-IMF report at the EU summit in Brussels warns that without a default, Greece's debt crisis could use the eurozone's entire €440B rescue fund on its own, The Daily Telegraph reports. Christine Lagarde adds that the IMF is no longer willing to participate in the country's bailout unless banks are prepared to write off 50% of their Greek debt.
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This news story has 17 comments:

  •  
    And Sarkozy said about Merkel: "She says she is on a diet and then helps herself to a second helping of cheese".

    This is a disaster.
    23 Oct 2011, 06:05 AM Reply Like
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    Greece will take all the cash EU gives them. The country continues to run large budget deficits and is unlikely to balance its budget any time soon. Even if banks take a 75% haircut, it will still need cash from the EU to funds its deficit, because no sane private party will give them any cash.
    23 Oct 2011, 06:29 AM Reply Like
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    What?

    Really? 50% haircut? And what would that do to the capital ratio? Huge losses and hundreds of billions more in recapitalisation? And that's just Greece, not including spain, italy, portugal.

    All fixed by Wednesday in time for tea you say?

    Bullish! Rally on!
    23 Oct 2011, 08:44 AM Reply Like
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    Sarkozy has to behave himself as well as the German finance minister. One is a double tongue snake, the other one the definition of arrogant.
    Germany has not brought the French banks in the position they are in. France has already lost its AAA rating basically. On the competence side the French finance minister got education from Lagarde (he was about 1 cm high with hat after she was done with him).
    23 Oct 2011, 09:34 AM Reply Like
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    The imminent Global implosion will parallel 1929-30-21-32...only worse. My charts are ditto ECRI = US already in Recession (following both Eurozone and China). Ongoing Global deleveraging will magnify that into Depression. If they existed at the time, buying SH, SDS, BGZ (or similar) in October 1929 (even after the Crash) would have been a simple and beneficial action. Same today.
    23 Oct 2011, 11:03 AM Reply Like
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    Greece is not salvageable and needs to default so as to finally start over.
    23 Oct 2011, 11:04 AM Reply Like
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    But somebody still has to pay.... If greece defaults then who pays?

    The answer is you... AND If greece does not change its ways we will do all of this again in the near future.
    23 Oct 2011, 01:33 PM Reply Like
  •  
    FAZ should pick up some points
    23 Oct 2011, 11:27 AM Reply Like
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    My bet is that the Fed will be extremely inflationary with a string of QEs. Bear positions in equities and bonds won't fare well this time around.
    23 Oct 2011, 12:00 PM Reply Like
  •  
    Ok, place your bets and see how much you can really lose then.
    23 Oct 2011, 01:08 PM Reply Like
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    I think the market bulls are getting exhausted to and this latest inaction and slew of promises is not going to be looked upon well. I am fearful for tomorrow.

    Hope has driven this market up, but uncertainty at this stage will take it down
    23 Oct 2011, 12:07 PM Reply Like
  •  
    so why is the EURO rallying?
    23 Oct 2011, 12:40 PM Reply Like
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    Larry5449: Time frame parallel--Apr/May 2008. Why did equities rally?
    The real-time debt market had already begun to downgrade Greece then. Greece, and the whole Eurozone, is now insolvent. More recently, why did the Euro rally to 145? There tends to be a calm (countertrend) before the storm. Why was the Dow where it was in Aug 1929?--lemmings appraoching the cliff. Just look at the current debt obligations of the Eurozone (US and China)--viable???
    23 Oct 2011, 01:15 PM Reply Like
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    It's very trendy to say "The end is near!". We have zero control over the Euro Debt Crisis Situation or Greek Debt. All we can do is wait it out...
    23 Oct 2011, 01:21 PM Reply Like
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    Wednesday :P
    23 Oct 2011, 01:23 PM Reply Like
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    J2,
    Who is saying "the end is near". Don't think anybody is postulating the end of the world is about to happen.

    The issue is: are markets going to go up or are they going to go down. And if so, when and how much? That's what every investor, speculator, trader, etc. has to make a decision on. If one does not make a decision, the decision will be made for them by default.
    23 Oct 2011, 01:27 PM Reply Like
  •  
    If the end is near, then just cross your fingers that it's zombie apocalypse that brings it about and not Greece. Then all the doom-and-gloomers can just find a safe hiding spot & keep their eyes open for the bright blue ford fusion with the "zombie outbreak task force" bumper stickers on it.

    I fully intend to be the protagonist who rounds up a group of survivors, lest the end *actually* draw nigh as so many seem to be predicting of late.

    It'd just be a lot more engaging if it involved zombies instead of Euros. Although zombie task force skills are equally effective in the event of apocalypse style looting, plundering, rioting etc. I guess....
    23 Oct 2011, 02:15 PM Reply Like
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