HomeLatest ThreadsGreatest ThreadsForums & GroupsMy SubscriptionsMy Posts
DU Home » Latest Threads » Forums & Groups » Main » General Discussion (Forum) » For those who don't know ... » Reply #9
Introducing Discussionist: A new forum by the creators of DU

Reply #9


Response to Sarah Ibarruri (Reply #5)

Sun Apr 8, 2012, 11:35 PM

9. Yes and no.

Yes, in absolute terms, the amount of money lost because of Greece's inability to service its debt is not a huge problem. On the other hand, a loss of confidence in the strength of those contracts by purchasers of Euro denominated bonds would be a problem for other countries, like Italy and Spain, that need to issue bonds to manage cash flow. This past week, a Spanish bond offering did not do well at auction. IMO, this was at least partially due to higher concerns over default risk based on what happened in Greece. Translation: increased borrowing costs for countries like Spain and Italy will force those countries to implement more stringent austerity programs of their own. I think you need to look beyond Greece in evaluating this problem.

Reply to this post

Back to OP Alert abuse Link to post in-thread

Always highlight: 10 newest replies | Replies posted after I mark a forum
Replies to this discussion thread
Arrow 34 replies Author Time Post
Sarah Ibarruri Apr 2012 OP
dkf Apr 2012 #1
Sarah Ibarruri Apr 2012 #4
dkf Apr 2012 #7
JDPriestly Apr 2012 #13
coalition_unwilling Apr 2012 #14
JDPriestly Apr 2012 #27
coalition_unwilling Apr 2012 #28
JDPriestly Apr 2012 #29
coalition_unwilling Apr 2012 #32
JDPriestly Apr 2012 #33
coalition_unwilling Apr 2012 #34
bongbong Apr 2012 #21
justice1 Apr 2012 #11
Sarah Ibarruri Apr 2012 #20
badtoworse Apr 2012 #2
Zalatix Apr 2012 #3
banned from Kos Apr 2012 #6
Sarah Ibarruri Apr 2012 #5
dkf Apr 2012 #8
LineLineLineReply Yes and no.
badtoworse Apr 2012 #9
DallasNE Apr 2012 #10
Sarah Ibarruri Apr 2012 #25
badtoworse Apr 2012 #26
fasttense Apr 2012 #17
badtoworse Apr 2012 #18
Sarah Ibarruri Apr 2012 #22
leveymg Apr 2012 #23
Sarah Ibarruri Apr 2012 #24
kenny blankenship Apr 2012 #12
coalition_unwilling Apr 2012 #15
tsuki Apr 2012 #16
Sarah Ibarruri Apr 2012 #19
girl gone mad Apr 2012 #30
Sarah Ibarruri Apr 2012 #31
Please login to view edit histories.