Comments on: Greece’s bond exchange: it’s official http://blogs.reuters.com/felix-salmon/2012/02/24/greeces-bond-exchange-its-official/ 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: traducator daneza romana http://blogs.reuters.com/felix-salmon/2012/02/24/greeces-bond-exchange-its-official/comment-page-1/#comment-53746 Mon, 29 Sep 2014 14:05:42 +0000 http://blogs.reuters.com/felix-salmon/?p=12261#comment-53746 Reporters tried to interview the Ying Ying, but all immersed in the new joy in the hope to keep some personal space, did not accept interview

]]>
By: mgb500 http://blogs.reuters.com/felix-salmon/2012/02/24/greeces-bond-exchange-its-official/comment-page-1/#comment-36363 Tue, 28 Feb 2012 06:21:23 +0000 http://blogs.reuters.com/felix-salmon/?p=12261#comment-36363 Why don’t the Greek government just replace all the legal BS – with the simple wording along the lines of:-

“Ha Ha – we’re a bunch of fraudsters and we’ve suckered you again – we have your money & you can’t get it back. We might give you some toilet paper in exchange. Now we’re going to gets lots of lovely free money from our fellow swindlers and liars the leaders of the 4th Reich. Of course we won’t pay it back – you the peasants and suckers will do that for us”

]]>
By: mgb500 http://blogs.reuters.com/felix-salmon/2012/02/24/greeces-bond-exchange-its-official/comment-page-1/#comment-36362 Tue, 28 Feb 2012 06:21:11 +0000 http://blogs.reuters.com/felix-salmon/?p=12261#comment-36362 Why don’t the Greek government just replace all the legal BS – with the simple wording along the lines of:-

“Ha Ha – we’re a bunch of fraudsters and we’ve suckered you again – we have your money & you can’t get it back. We might give you some toilet paper in exchange. Now we’re going to gets lots of lovely free money from our fellow swindlers and liars the leaders of the 4th Reich. Of course we won’t pay it back – you the peasants and suckers will do that for us”

]]>
By: gggonzo32 http://blogs.reuters.com/felix-salmon/2012/02/24/greeces-bond-exchange-its-official/comment-page-1/#comment-36349 Mon, 27 Feb 2012 14:55:34 +0000 http://blogs.reuters.com/felix-salmon/?p=12261#comment-36349 they cant just stop paying the old bonds if only 75%-90% agree to the swap. the time period for the whole procedure is so short – there must be tons of people out there who will not respond at all (people who deliberately dont want to but also people who just cant in that time frame…). what an outrage if these people are suddenly left with nothing…
my take of all this:
full payout to old bonds if >90% agree to the swap
deliberate uncertainty between 75-90%
no deal bel ow 75%

]]>
By: CDN_Rebel http://blogs.reuters.com/felix-salmon/2012/02/24/greeces-bond-exchange-its-official/comment-page-1/#comment-36336 Sun, 26 Feb 2012 08:12:06 +0000 http://blogs.reuters.com/felix-salmon/?p=12261#comment-36336 I think I agree with Turgot2, there will be a mass exodus from Greece but in the end that will be the biggest help for the Greek people. If these bailouts can be coupled with a medium-sized influx from the EIB and 10% of Greeks (roughly 1m) seek their riches abroad then this story can have a happy-ending (which is to say, a muddle through without things getting ‘Arab Spring’-worse).

]]>
By: ARJTurgot2 http://blogs.reuters.com/felix-salmon/2012/02/24/greeces-bond-exchange-its-official/comment-page-1/#comment-36335 Sun, 26 Feb 2012 03:15:19 +0000 http://blogs.reuters.com/felix-salmon/?p=12261#comment-36335 I’m going to nay say here, and vote this a miracle. I, also, disdain Euro Socialist pinky wavers, but I never thought they would even get this far. It’ll be a mess, but they are going to pull this off after all. Just expect the future to hold Gyros restaurants every other shop in Melbourne.

]]>
By: TorrensHume http://blogs.reuters.com/felix-salmon/2012/02/24/greeces-bond-exchange-its-official/comment-page-1/#comment-36332 Sat, 25 Feb 2012 20:47:53 +0000 http://blogs.reuters.com/felix-salmon/?p=12261#comment-36332 Perhaps its time to re-visit the debate on the Sovereign Debt Restructuring Mechanism:
http://www.cigionline.org/blogs/new-age- of-uncertainty/g20-and-sovereign-debt-re structuring-mechanism

More generally while the bond exchange is part of the solution, I can’t hel but think that people forget that the problem faced by Greece and other European periphery countries is that they are experiencing twin crises (fiscal and current account crisies). And, twin crises mean that they need two policy tools to deal with the situation.

So far policy makers have dealt treated the situation mostly as a fiscal crisis and ignored the current account crisis; and as a result they have focused on one policy tool — financing of the Greek fiscal psoition to avoid “default”.

The other policy tool, to deal with the current account imbalance, is a devaluation. The classical internal devaluation means high unemployment and prolonged recesion. External devaluation avoids much of these problems. The periphery therefore needs to consider options for an orderly euro exit and devaluation (as well as financing).

http://www.specie-flow.net/2012/02/22/it s-twins/

Two policy tools for twin crises.

]]>
By: skeptometric http://blogs.reuters.com/felix-salmon/2012/02/24/greeces-bond-exchange-its-official/comment-page-1/#comment-36331 Sat, 25 Feb 2012 16:05:01 +0000 http://blogs.reuters.com/felix-salmon/?p=12261#comment-36331 How could the average bondholder possibly make a rational decision about turning in his bonds? Are the major holders – banks or whoever – going to hire programmers to calculate the alternatives, then monitor some sort of polls to see whether the mandatory bail-in will apply? Is there a secret formula that some privileged holders will be able to apply?

]]>
By: dandraka http://blogs.reuters.com/felix-salmon/2012/02/24/greeces-bond-exchange-its-official/comment-page-1/#comment-36330 Sat, 25 Feb 2012 16:04:16 +0000 http://blogs.reuters.com/felix-salmon/?p=12261#comment-36330 @a.soffronow It doesn’t. Greek pensions hold a lot of GGBs, and they’re about to go semi-broke. That’s one reason why bailout 2.0 needs so much money. Other reasons include refinancing greek banks, which also hold a lot of GGBs, and money to be used as “sweeteners” in the deal.

The reason it doesn’t apply to other euro goverments’ bonds is because, as Felix was written (see “The Greece game turns chaotic”) they’ve already converted them in shiny new different bonds which are not part of the deal.

]]>
By: y2kurtus http://blogs.reuters.com/felix-salmon/2012/02/24/greeces-bond-exchange-its-official/comment-page-1/#comment-36325 Sat, 25 Feb 2012 02:55:37 +0000 http://blogs.reuters.com/felix-salmon/?p=12261#comment-36325 I’m betting that Morgan town Joe is right… this deal is about to fall on it’s face.

Can anyone tell me what Europe gets in return for their 15% contribution? To me this would be like congress voting to give a massive amount of aid to a single state.

Next can anyone explain to me why Greece is bothering to pay the last 13%? I suppose that token jesture is sort of like a thank you paid for out of the new bailout money.

Lastly, where will the Greek budget stand in 2013. Their interest payments just fell by something north of 85%. What % of their budget was debt service? My guess is that they will have borrowing needs in 2013 and beyond.

If this deal is consumated on terms anywhere near the ones just announced investors the world over need to take a good hard look at the risk/reward profile of soverign debt. What interest rate justifies the risk of a 72% loss of principal?

]]>