Comments on: Greece’s endgame looms http://blogs.reuters.com/felix-salmon/2012/01/18/greeces-endgame-looms/ A slice of lime in the soda Sun, 26 Oct 2014 19:05:02 +0000 hourly 1 http://wordpress.org/?v=4.2.5 By: marantz http://blogs.reuters.com/felix-salmon/2012/01/18/greeces-endgame-looms/comment-page-1/#comment-35194 Fri, 20 Jan 2012 23:13:00 +0000 http://blogs.reuters.com/felix-salmon/?p=11901#comment-35194 Cmon… Greece and the EU will kick the can down the road. They changed the rules before, because they made the rules. They will change them again! Default is not a DEFAULT! no CDS, youre screwed!

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By: greengroup http://blogs.reuters.com/felix-salmon/2012/01/18/greeces-endgame-looms/comment-page-1/#comment-35131 Wed, 18 Jan 2012 17:38:20 +0000 http://blogs.reuters.com/felix-salmon/?p=11901#comment-35131 To reduce the fear factor, it seems a systemic event is unlikely because of the small scale of outstanding greek cds coverage ($4 billion). People lose money, but it’s basically capped at the value of the haircut plus the probability of a bank failing as a result. Plus the probability that an unregulated derivative that isn’t a cds is triggered.

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By: KenG_CA http://blogs.reuters.com/felix-salmon/2012/01/18/greeces-endgame-looms/comment-page-1/#comment-35127 Wed, 18 Jan 2012 16:35:08 +0000 http://blogs.reuters.com/felix-salmon/?p=11901#comment-35127 TFF, no question, we are more integrated fiscally and economically, but not politically, and the obstacles to solving the problems are mostly political.

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By: TFF17 http://blogs.reuters.com/felix-salmon/2012/01/18/greeces-endgame-looms/comment-page-1/#comment-35125 Wed, 18 Jan 2012 15:52:24 +0000 http://blogs.reuters.com/felix-salmon/?p=11901#comment-35125 Suppose it is a matter of opinion, KenG, but I believe the US is closer to being a full fiscal and economic union than Europe is.

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By: KenG_CA http://blogs.reuters.com/felix-salmon/2012/01/18/greeces-endgame-looms/comment-page-1/#comment-35124 Wed, 18 Jan 2012 15:37:09 +0000 http://blogs.reuters.com/felix-salmon/?p=11901#comment-35124 TFF, and the U.S. doesn’t have too many different masters and distinct interests? The US government almost defaulted because of a small handful of economic terrorists were making demands that were unacceptable to the majority of the nation, and their political leaders deferred to them. We have 50 states, they have 17. I don’t think it’s any worse.

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By: TFF http://blogs.reuters.com/felix-salmon/2012/01/18/greeces-endgame-looms/comment-page-1/#comment-35123 Wed, 18 Jan 2012 15:25:09 +0000 http://blogs.reuters.com/felix-salmon/?p=11901#comment-35123 “the EU can print euros just as easily as the US can print dollars”

Not true — they serve too many different masters, with distinct interests. That is part of the problem.

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By: klhoughton http://blogs.reuters.com/felix-salmon/2012/01/18/greeces-endgame-looms/comment-page-1/#comment-35116 Wed, 18 Jan 2012 14:48:56 +0000 http://blogs.reuters.com/felix-salmon/?p=11901#comment-35116 “And the next day, you could find Tim Geithner’s head on a pike just outside of Zuccotti Park, if you could make your way through the clouds of tear gas and phalanx of policemen in full riot gear.”

Optimist.

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By: KenG_CA http://blogs.reuters.com/felix-salmon/2012/01/18/greeces-endgame-looms/comment-page-1/#comment-35115 Wed, 18 Jan 2012 13:48:52 +0000 http://blogs.reuters.com/felix-salmon/?p=11901#comment-35115 johnhaskell, there are problems beyond the $18B in bonds that are on the verge of default, but that seems to be the only one that is being addressed anyway. There was no mention of Spanish or Italian debt, or the German banking system (btw, the EU can print euros just as easily as the US can print dollars).

I don’t expect the US to cover that loan, I’m just trying to put it in perspective. It’s not a big number compared to what the US has been dedicating to keeping our economy from imploding, and the EU’s economy is bigger than the US economy. The cost of failing to resolve the debt issues is far greater than the amounts that are in danger of default.

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By: Strych09 http://blogs.reuters.com/felix-salmon/2012/01/18/greeces-endgame-looms/comment-page-1/#comment-35109 Wed, 18 Jan 2012 07:09:41 +0000 http://blogs.reuters.com/felix-salmon/?p=11901#comment-35109 KenG_CA, yes, that would certainly do the trick if The Fed and/or Treasury “just” printed up an extra $18 billion and pay off Greek bonds. And the next day, you could find Tim Geithner’s head on a pike just outside of Zuccotti Park, if you could make your way through the clouds of tear gas and phalanx of policemen in full riot gear.

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By: johnhhaskell http://blogs.reuters.com/felix-salmon/2012/01/18/greeces-endgame-looms/comment-page-1/#comment-35108 Wed, 18 Jan 2012 07:08:15 +0000 http://blogs.reuters.com/felix-salmon/?p=11901#comment-35108 KenG_CA

You are right, the whole problem is that $18 billion which is right in front of your nose. Greece has no other problems. Italy has no other problems. Spain has no other problems. The German banking system is soundly capitalized. It’s a one time payment of $18 billion and all your troubles are gone.

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