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UBS says the 50% writedown of Greek paper is really just 22% after factoring in that only...

UBS says the 50% writedown of Greek paper is really just 22% after factoring in that only privately held bonds will be subject to the haircut (leaving the ECB, EU, and IMF holdings whole), and also that Greece will then need to recapitalize its banks. In other words, 50% is not nearly enough. "To achieve an actual 50% reduction ... Greece would need to implement a 100% haircut."
Comments (6)
  • Stone Fox Capital
    , contributor
    Comments (6747) | Send Message
     
    Why in the world does Greece deserve a 50% haircut?
    14 Oct 2011, 12:15 PM Reply Like
  • wolverine27
    , contributor
    Comments (412) | Send Message
     
    20 ..50 ..60 ...100..

     

    this is the biggest joke in the history of balance sheets. the bottom line is there is no money to cover any haircut.
    they have to recapitalize the entire banking world in europe , keep buying spanish bonds and italian bonds so they dont go into recession , keep paying ireland and portugal and socialize the failing banks . they need to do this with 300 billion .

     

    what planet are these people on ?

     

    this market rallies on air and rallies like this dont end nicely. just a matter of how high do they run the averages.
    14 Oct 2011, 12:31 PM Reply Like
  • Humble Value Miner
    , contributor
    Comments (433) | Send Message
     
    the ECB can print any amount of money they want. The Euro is terribly overvalued so this is both a need and a good option. They should just print say euro 10T and stop all these meetings and talks. However now they wanted to scare Greece Italy and so on with the hope that these Governments will become virtuous (nice hope....)
    14 Oct 2011, 02:05 PM Reply Like
  • wolverine27
    , contributor
    Comments (412) | Send Message
     
    the ecb can not print money . it doesnt have authority like the fed . they dont even have the legality to leverage the 300 billion they have .
    printing euros is not an option because you have 17 countries that have to agree.
    14 Oct 2011, 10:03 PM Reply Like
  • Humble Value Miner
    , contributor
    Comments (433) | Send Message
     
    on my Euro bills it is stated they are printed by the ECB, so the ECB can definitely print :). Apart the kidding, the ECB is independent just like any other Central Bank in any other capitalist Country, they have full authority on the money. Then, if the Germans don't want the ECB to print, and the ECB (Trichet) listens, then this is another topic; another reason is the ECB wants to put some (needed, indeed) pressure on PIIGS in order to force them to be more virtuous.
    But a too much strong Euro means my pig friends will buy Ford or Nissan rather than Wolkswagen, so they will have to release the pressure and print (or the cure will kill the patient - and also the doctor...)
    18 Oct 2011, 06:03 PM Reply Like
  • wolverine27
    , contributor
    Comments (412) | Send Message
     
    interesting how this quagmire is playing out .

     

    watching those yields on italian bonds ....i smell smoke.
    18 Oct 2011, 09:02 PM Reply Like
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