Why Greece matters: the interconnected nature of risk within the European - and the world's -...

Why Greece matters: the interconnected nature of risk within the European - and the world's - financial system. The "Greece doesn't matter" attitude is typical of U.S.-centric investors who fail to understand the world as it is, not as it used to be, Rory Green writes.
Comments (16)
  • alan.greenscam
    , contributor
    Comments (353) | Send Message
    Maybe Rory Green fails to understand the world as it used to be and as it is today..... it's not that Greece doesn't matter, it just shouldn't be having the effect on world markets as it is, hell, their's billionaires in this world who have more wealth than the GDP of Greece..... in fact if someone was to check a few Swiss bank accts or tax havens in the British Virgin Islands you'd probably find a whole lotta cash that would take care of Greece's problems..... as with most countries.....
    16 Jun 2011, 06:41 PM Reply Like
  • bbro
    , contributor
    Comments (11216) | Send Message
    Greece's has 300 billion in soverieign debt...
    16 Jun 2011, 07:01 PM Reply Like
  • 1980XLS
    , contributor
    Comments (3360) | Send Message
    Doesn't matter.


    Site is about making money trading.


    I warned you and your permabull friends (Econdoc, American in Paris Etc) not to ignore the charts, 6 weeks ago.


    How's that workin' out?


    Experienced investors/traders know it does not matter what you think yourself, but what the market thinks.


    That is unless you permabulls think you can make money only trading to one another.


    You are ignoring what's going on around you.
    16 Jun 2011, 08:10 PM Reply Like
  • Buddy Canuspare
    , contributor
    Comments (406) | Send Message
    "You are ignoring what's going on around you."
    Seems like he's not alone.
    17 Jun 2011, 12:57 AM Reply Like
  • bbro
    , contributor
    Comments (11216) | Send Message
    Day traders versus Longer term investors....age old issue...never be
    a perma bull or perma bear or for that matter perma day trader...
    17 Jun 2011, 04:17 AM Reply Like
  • Bouchart
    , contributor
    Comments (1099) | Send Message
    Everyone has been so focused on Greece for so long that I'm a little skeptical that it will cause a systemic crash. If there's going to be a contagion fear it might be somewhere that nobody is looking right now, say, Japan.
    16 Jun 2011, 08:05 PM Reply Like
  • MarquisdeLafayett
    , contributor
    Comments (62) | Send Message
    agreed ...
    16 Jun 2011, 09:08 PM Reply Like
  • Windsun33
    , contributor
    Comments (4431) | Send Message
    I think the main effect of Greece crashing and burning will be a sympathetic temporary downturn in US stocks when Euro stocks drop 5-10%. The US exposure to Greek debt is not that high, somewhere around $75 billion total, most at GS. $75 billion is just about the GDP of Boise, Idaho. There are cities in California that have more debt (which is another issue...).
    16 Jun 2011, 10:59 PM Reply Like
  • Duude
    , contributor
    Comments (3413) | Send Message
    The EU is willing to extend a bailout based on austerity. If Greece is willing to accept that fate, fine. But if the populace must have their way, the European union will need to bail out their banks affected, and promptly kick Greece out of the EU. Greece won't be able to borrow a dime. They could return to printing their own money, and later enter into a barter trade agreement with Cuba and Zimbabwe.
    16 Jun 2011, 08:34 PM Reply Like
  • The Geoffster
    , contributor
    Comments (4291) | Send Message
    I find it a tad bit ironic that the Greeks are tired of bending over.
    16 Jun 2011, 08:56 PM Reply Like
  • Good Captain
    , contributor
    Comments (463) | Send Message
    Touche' or should I say Toush?
    16 Jun 2011, 09:48 PM Reply Like
  • dividend_growth
    , contributor
    Comments (2895) | Send Message
    I think a Greek default is a very bullish event:


    1. Market expects Greece to default anyway, as shown in surveys and CDS numbers.


    2. Greece default gives policy makers around the world (especially the US Fed) more excuses to print money.


    3. Greece default scares people out of Eurozone and into US Treasuries.


    4. Greece default should cause commodities to tumble, thus reducing inflationary pressures.


    5. Getting rid the likes of Greece actually strengthens Eurozone in the long run.


    When the market craters temporarily due to this event, you want to be a buyer, not a seller.
    16 Jun 2011, 10:03 PM Reply Like
  • TomasViewPoint
    , contributor
    Comments (4911) | Send Message
    The issue with Greece is not that it is large in absolute numbers but that it is a symptom of a larger problem across western economies. Too much debt, too few people working and paying taxes, too many people wanting a life of luxury and austerity is a foreign concept.


    Extrapolate Greece across the western world in various degrees of magnitude and now you have a real problem. Obviously the pundits have been wrong the last 6 years about credit problems so it is hard to be cavalier about these issues.
    16 Jun 2011, 11:52 PM Reply Like
  • Windsun33
    , contributor
    Comments (4431) | Send Message
    I think the biggest fear is not Greece itself - that has pretty much been written off in most people's minds. What is worrisome is that it might also bring down the other PIIG countries.


    Pundits... wrong... WOW, hard to believe...
    16 Jun 2011, 11:53 PM Reply Like
    , contributor
    Comments (10786) | Send Message
    Excuse me. What's austerity? :)
    17 Jun 2011, 12:04 AM Reply Like
  • bbro
    , contributor
    Comments (11216) | Send Message
    Does anybody know what Greece's debt service payments to GDP
    17 Jun 2011, 06:13 AM Reply Like
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