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The EU may require Greece to provide collateral such as assets or revenue from asset sales in...

The EU may require Greece to provide collateral such as assets or revenue from asset sales in order to receive extra aid and avoid a debt restructuring, a source says. A German official says other steps may include lower interest rates or longer maturities on bailout loans. (previous)
Comments (30)
  • Econdoc
    , contributor
    Comments (2944) | Send Message
     
    I am certain that Angela Merkel and the rest of the German/ECB clown show will provide me with another fantastic buying opportunity in Euro equities over the coming weeks. This is the gift that just keeps on giving.

     

    E
    8 May 2011, 11:46 AM Reply Like
  • cowpieTX
    , contributor
    Comments (29) | Send Message
     
    Truth is, they usually lie. It wouldn't be a secret meeting then would it? Greece (WSJ agrees) knows that they'd be better off exiting the Euro. And I'm sure Greece and all it's vast Democratic knowledge would know this as well. It's really not as absurd a possibility as Papanderosapolloderoso... would like us to believe.
    8 May 2011, 05:49 PM Reply Like
  • kmi
    , contributor
    Comments (3979) | Send Message
     
    Actually this is wrong, Greece still has a lot of funding available from the EU rescue facility, and can likely last till what is likely their goal of a restructure in 2013.

     

    The question is whether it makes sense from all sides to extend it out that far.
    8 May 2011, 05:58 PM Reply Like
  • Puritan
    , contributor
    Comments (15) | Send Message
     
    Greece has tens of great islands. Heavy lending
    Euro partners could rest easier if Greece would
    transfer an island or two to ECB as collateral
    with all rights of ownership should they
    fail to pay back what has been loaned.
    The Greeks are very nationalistic and may
    start paying their taxes than to see
    foreign ownership of their beloved(?) country.
    8 May 2011, 11:58 AM Reply Like
  • kmi
    , contributor
    Comments (3979) | Send Message
     
    Wow what is up with this comment... it's like everyone who posts that Greece will give up islands to the EU thinks they are going to get one too...

     

    Listen, if you had the money or the interest you'd know there are plenty for sale.
    8 May 2011, 06:08 PM Reply Like
  • apberusdisvet
    , contributor
    Comments (2860) | Send Message
     
    The untenable positions of Greece and Ireland should be a warning to all nations that the global banking cartel will not be satisfied until it has achieved involuntary servitude for all.
    8 May 2011, 11:58 AM Reply Like
  • bearfund
    , contributor
    Comments (1534) | Send Message
     
    Seriously? Greece's problems have nothing to do with the banking cartel. They spent too much money, paid too little in taxes, and allowed their government spending to grow out of control. The problems in Ireland are almost entirely due to the bank debt guarantees, which I agree should not have been made. But Greece is a completely different animal. It's ignorant to lump them together.
    8 May 2011, 12:49 PM Reply Like
  • WMARKW
    , contributor
    Comments (10244) | Send Message
     
    Bearfund....kindly tell me how Greece got the money to spend without having the tax revenues? Oops...yep thanks to the banking cartel it was loaned to them. Have you ever read Confessions of an Economic Hit Man?
    9 May 2011, 12:18 AM Reply Like
  • bearfund
    , contributor
    Comments (1534) | Send Message
     
    So now you want to blame banks for lending (in the form of buying sovereign debt that is acceptable under *government* regulations as core capital, no less)? Please tell me you're not one of the people blaming them for NOT lending, too. Besides, no one forced the Greek government to borrow money; they could have spent less or enforced their own existing tax laws instead.

     

    It sickens me to have to stand up for greedy slimeballs, but stuff like this is just plain idiotic. The Greeks caused their own problems; it was irresponsible behaviour by the Greek *government*, not Greek *banks* that did them in. If there weren't a single bank in Greece they'd still be in exactly the same spot. The same absolutely cannot be said for Ireland or Iceland. That's the distinction I'm drawing here. No one put a gun to their heads and forced them to borrow money. In fact, no one ever bothers putting a gun to the head of someone who has nothing to give. Instead the gun is being leveled at the heads of middle-class savers in northern Europe who are being told they have to bail out the irresponsible Greeks. Very different from Ireland, where the Irish citizenry is being told (at the point of a gun, naturally) that it has to bail out the irresponsible Irish BANKS. See the difference?

     

    If you don't, that's fine. You see banks involved somehow and savers with guns to their heads and don't feel the need to think any more deeply about it. That's not wrong, it's just very shallow. I'd expect people here to be thinking a little more deeply about these issues. For example, the situation in Ireland could have been prevented by better banking regulations and greater clarity on what can and cannot be guaranteed by the government. Neither would have prevented the situation in Greece. I think that's worth drawing the distinction, but it's ok if you don't. Take your commentary to Yahoo or /b/ where it'll be seen as interesting and insightful instead of ignorant and superficial.
    9 May 2011, 02:03 AM Reply Like
  • WMARKW
    , contributor
    Comments (10244) | Send Message
     
    First...no one forces any government to borrow...just so happens the banks make it easy for politicians to do so...and tell me the last time you saw one politician willing to say not to constituents.

     

    Second....if there weren't a single bank in Greece, then they wouldn't be in debt.

     

    So you think the $14 trillion in US debt could have happened without the Federal Reserve's facilitation. Do you have any idea how the Central Banks of the world have purchased eachother's debt.

     

    The Fed is currently bumped their balance sheet up by $2 Trillion. Where'd they get the money to back up the new $$ they printed. They didn't put up any of their own money. They didn't go out and raise capital to lend to the government...they printed it into existence. That $2 Trillion and the $3 Trillion coming in the next two years will be $5 on top of $12 or nearly a 50% debasement. We all pay for it in inflation and the dollar is worth less today than in the past.

     

    Banks can only make money by issuing DEBT and charging interest. Central Banks are the masters of creating debt.
    14 May 2011, 12:05 AM Reply Like
  • BM1087
    , contributor
    Comments (34) | Send Message
     
    I would love to see the Greeks screw the Germans and walk away with a huge default. Let's just say a WWII revenge payback for their occupation.
    8 May 2011, 12:20 PM Reply Like
  • User 353732
    , contributor
    Comments (4785) | Send Message
     
    The Greek Regime will not honor its debts and will make only the most laughable attempts to meet the conditions for debt "restructuring". It will eventually compel the Northern Europeans to expel it from the EU but that will take years.
    Until then it will be an economic and financial squatter
    claiming all the benefits of EU membership without accepting any duties.
    In the end it is not the Greek Regime that will pay but the Northern European middle class.
    8 May 2011, 12:35 PM Reply Like
  • kmi
    , contributor
    Comments (3979) | Send Message
     
    Greeks themselves wouldn't mind said 'expelling', it's the pols and their cronies selling the Greek middle class into servitude.
    8 May 2011, 06:10 PM Reply Like
  • WMARKW
    , contributor
    Comments (10244) | Send Message
     
    Bingo...the glorious benefits of fiat money....put the burden on the people....socialize the losses.
    9 May 2011, 12:19 AM Reply Like
  • WMARKW
    , contributor
    Comments (10244) | Send Message
     
    Bingo...the pols and the cronies....having given fiat money power to the banking cartel....puts it to the middle class.
    9 May 2011, 12:20 AM Reply Like
  • Tom Armistead
    , contributor
    Comments (5219) | Send Message
     
    The Greeks have some pretty nice real estate they could use as collateral, but some of it is awfully old and crumbly.
    8 May 2011, 01:00 PM Reply Like
  • WMARKW
    , contributor
    Comments (10244) | Send Message
     
    Does it not give anyone pause to consider the implications of a country or an economic union loading up the people with debt and then moving to ask for collateral in support of that debt. What will the collateral be when that request is made of the USA?
    9 May 2011, 12:23 AM Reply Like
  • Ricard
    , contributor
    Comments (3829) | Send Message
     
    So what will happen to FX tomorrow? Dollar jumps, everything else plummets? Or do people run to gold? Or both?
    8 May 2011, 01:17 PM Reply Like
  • Tom Armistead
    , contributor
    Comments (5219) | Send Message
     
    The sun will rise in the east, I'm pretty sure of that.
    8 May 2011, 01:37 PM Reply Like
  • Ricard
    , contributor
    Comments (3829) | Send Message
     
    lol, thanks for the reality check.

     

    Still trying to grasp the mechanics of FX, so it was less a question about what to do than about how it works.

     

    Perhaps the lessons from stocks apply here as well, about short term voting and long term weighing.
    8 May 2011, 05:55 PM Reply Like
  • Tack
    , contributor
    Comments (12723) | Send Message
     
    There is an often expressed supposition that the strong EU members would be so much better off seeing the weaker countries expelled or leaving of their own accord, but, it's not apparent that the logic of this assumption has been fully thought out.

     

    If Germany, France, et al, were to see Greece, Ireland, Portugal, Spain(?) leave the euro (whether or not they leave the EU), what would occur? Immediately, the euro would rise even further, reducing the competitiveness of the euro-based economies, which exist to a great degree on export performance. At the very same time, new, cheap-currency, low-cost competitors would be hatched in the departing countries, draining capital way from the expensive countries and further exacerbating the competitive situation. None of this would be good.

     

    By having all these would-be competitors lassoed to the euro --even in spite of subsidies and bailouts-- Germany and the other "expensive" countries maintain full control over the behavior of their weaker brethren and can modulate the situation, as they see fit.

     

    This is a powerful incentive for the strong nations to retain the weaker ones under their influence. Presently, the benefits outweigh the costs.
    8 May 2011, 02:01 PM Reply Like
  • Mistermarc0
    , contributor
    Comments (13) | Send Message
     
    You know what blows me away about your comment is that you fail to acknowledge that the Greeks actually borrowed all this money, lied about their financial condition and refuse to pay their taxes...

     

    now they want to pretend and extend...i can not believe the German middle class continues to allow its leaders to put up with this situation.
    8 May 2011, 02:25 PM Reply Like
  • kmi
    , contributor
    Comments (3979) | Send Message
     
    If i am your bank, and you lie on your loan app, and I believe you and give you money, the failure is mine.

     

    And the Germans -will- put up. If you borrow 1million from me and can't pay it back, you have a problem, if I lend you 1billion and you can't pay it back, well, then -I- have a problem.

     

    For a sense of what kind of problem I quote from here:

     

    seekingalpha.com/artic...

     

    "When you look at Greek assets, about 55% of bank capital in Portugal is exposed to Greece. And 83% of bank capital in Ireland is exposed to Greece. So it’s pretty clear that if we restructure Greece, we will severely damage the banking systems of Ireland and Portugal. And the big exposure to Ireland and Portugal is in Spain. Ireland represents 138% of the capital of the Spanish banking system, and Portugal represents 133%. And if we take out Spain, Spain represents 94% of the capital of the German banking system. And I’m not adding these numbers up. You see how it’s very easy to get a scenario going in Europe where the dominoes start to fall and it causes a crisis."
    8 May 2011, 06:15 PM Reply Like
  • Tack
    , contributor
    Comments (12723) | Send Message
     
    Mister:

     

    What's overlooked is that Greece is less than 1% of the EU GDP,and the cost of patronizing its excesses is judged less than the potential cost of having it, and other countries, like Ireland, hatched as low-cost independent competitors. An argument can certainly be made that Greece and the possible departees would be better off, but not that the German middle class is being drained. On the contrary, despite the usual misplaced populism, the German middle class benefits by the vibrant German economy occasioned by having the peripheral countries held in a less competitive position by membership in the euro.
    8 May 2011, 06:49 PM Reply Like
  • WMARKW
    , contributor
    Comments (10244) | Send Message
     
    Mistermarc....you know what blows me away....it's that the banksters allowed Greece to borrow all this money. Goodness....are you telling me that someone pulled one over on the Central Bank? I find that plenty hard to believe. One crook besting a global conspiracy of crooks? That's like saying someone actually swindled Goldman Sachs out of a couple billion.
    9 May 2011, 12:26 AM Reply Like
  • WMARKW
    , contributor
    Comments (10244) | Send Message
     
    Excellent! Don't forget how France sit in the middle either. It is a creditor of not insignificant proportions.
    9 May 2011, 12:28 AM Reply Like
  • Rookie IRA Investor
    , contributor
    Comments (2537) | Send Message
     
    The European economies are very interwoven. Greece relies on tourism to earn foreign euros.

     

    But where is Greece's biggest tourism market? Germany, a nation full of sun worshipers who, unlike the French, have no Mediterranean coastline.

     

    And I haven't been to Greece for several years now, but most of the taxis used to be Mercedes Benz vehicles.
    8 May 2011, 02:38 PM Reply Like
  • David Urban
    , contributor
    Comments (1036) | Send Message
     
    The longer this story plays out the greater chance of investors in Greek, Irish, and Portugese debt will be forced to accept haircuts on their positions.
    8 May 2011, 03:57 PM Reply Like
  • WMARKW
    , contributor
    Comments (10244) | Send Message
     
    Bingo...and yet me thinks, just like we saw in the US, somehow the banking system will get 100 cents on the dollar for a bailout from the citizens.
    9 May 2011, 12:30 AM Reply Like
  • Rookie IRA Investor
    , contributor
    Comments (2537) | Send Message
     
    Greece has a very difficult economy and had to make a transition from a variety of military dictatorships.

     

    The main industries in terms of earning currency are agriculture--with products such as wine, olive oil, cucumbers, tomatoes, figs, and watermelons--shipping, tourism (but almost exclusively from April to October) and expatriates mostly in the US sending remittances.

     

    There is not much manufacturing, little in the way of minerals or natural resources, the waters are pretty fished out. Much of the land is rocky, mountainous and arid with some fertile valleys and plains. Goats do well there, but not many large cattle.

     

    In some respects it reminds me of Haiti, with the high arid mountains, dry climate, and ubiquitous goats, and general air of ungovernability. What it has in common with Ireland is that in the past much of the population has left and gone to the US.

     

    The population is rather religious. God knows how the economic crisis will be resolved.
    8 May 2011, 04:11 PM Reply Like
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