badtoworse
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Mon Apr-18-11 08:38 PM
Response to Reply #67 |
| 68. There is nothing more to it than simple math |
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The interest payments are fixed. If you're willing to sell it for less than you paid for it, the yield on the bond will be higher for the person that bought it at the lower price.
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| -Furious Greeks press for country to default on debt, Violence on the streets as backlash grows |
stockholmer |
Apr-18-11 12:47 PM |
#0 |
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So if they default, the bond holders on don't get paid |
Cali_Democrat |
Apr-18-11 12:51 PM |
#1 |
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Isn't that what Finnland is saying, too? |
aquart |
Apr-18-11 01:03 PM |
#4 |
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I think you mean Iceland, Finland (along with Sweden, Norway, Denmark) is doing well economically |
stockholmer |
Apr-18-11 01:22 PM |
#16 |
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Iceland. All those blonds look alike to me. |
aquart |
Apr-18-11 02:52 PM |
#49 |
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public debt is debt accumulated directly by a government, private debt is owed by people and firms |
stockholmer |
Apr-18-11 03:46 PM |
#57 |
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Yes. We have been robbed. Yet we hang no one. |
aquart |
Apr-18-11 11:13 PM |
#69 |
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Do you think things would be any better if the government is unable to borrow? |
badtoworse |
Apr-18-11 01:04 PM |
#5 |
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Yes, things would be much better. |
girl gone mad |
Apr-18-11 01:10 PM |
#7 |
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Unless they live within their means, that would not help |
badtoworse |
Apr-18-11 01:17 PM |
#11 |
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Look at Argentina's example. |
girl gone mad |
Apr-18-11 04:27 PM |
#58 |
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Greek 2 year bond yields just hit 20% today |
Cali_Democrat |
Apr-18-11 01:13 PM |
#8 |
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The risk of default is built into the high rates. Who is going to loan money with a high... |
yawnmaster |
Apr-18-11 01:16 PM |
#10 |
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Indeed. The people buying Greek debt knew what they were getting into |
Cali_Democrat |
Apr-18-11 01:20 PM |
#13 |
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Plenty of junk bond investors out there to eat these up |
sixmile |
Apr-18-11 01:24 PM |
#17 |
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"the yields are up because the bond prices are down". |
Cali_Democrat |
Apr-18-11 01:27 PM |
#22 |
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So in other words, it all works perfectly for |
truedelphi |
Apr-18-11 05:34 PM |
#67 |
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There is nothing more to it than simple math |
badtoworse |
Apr-18-11 08:38 PM |
#68 |
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Living without credit is very difficult for individuals and for governments |
badtoworse |
Apr-18-11 01:21 PM |
#14 |
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And Yet, Is So Very Liberating |
NashVegas |
Apr-18-11 01:38 PM |
#29 |
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The evidence does not support that claim. |
girl gone mad |
Apr-18-11 05:20 PM |
#66 |
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I don't think they are leeches, but they do know the risks. Interest rates are high because of... |
yawnmaster |
Apr-18-11 01:18 PM |
#12 |
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It isn't clear to me how they would manage with no credit. |
badtoworse |
Apr-18-11 01:24 PM |
#18 |
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You do know that bond investors would no longer lend Greece money, don't you? |
former9thward |
Apr-18-11 01:26 PM |
#19 |
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4 options |
Cali_Democrat |
Apr-18-11 01:34 PM |
#25 |
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They have to spend less money (austerity) |
badtoworse |
Apr-18-11 01:39 PM |
#30 |
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Austerity isn't the only option |
Cali_Democrat |
Apr-18-11 01:43 PM |
#31 |
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I would include raising taxes as part of an austerity package |
badtoworse |
Apr-18-11 01:46 PM |
#34 |
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Actually, there's an old maxim that says you lend money at your |
coalition_unwilling |
Apr-18-11 05:03 PM |
#63 |
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Whether a good choice or not... 5. dump the euro and print your own currency. |
yawnmaster |
Apr-18-11 02:01 PM |
#36 |
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What makes you think any foreign suppliers would accept it as payment? |
badtoworse |
Apr-18-11 02:20 PM |
#38 |
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it would likely have to be converted to euro and I would expect the exchange... |
yawnmaster |
Apr-18-11 02:33 PM |
#40 |
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It would work, provided they used restraint in managing the money supply |
badtoworse |
Apr-18-11 02:44 PM |
#45 |
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Can austerity be avoided? again this is coming from ignorance of the composition... |
yawnmaster |
Apr-18-11 02:48 PM |
#47 |
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um |
datan |
Apr-18-11 01:43 PM |
#32 |
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Probably because political leaders are economically naive. |
girl gone mad |
Apr-18-11 04:50 PM |
#61 |
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Ruh-roh. Nt |
xchrom |
Apr-18-11 12:52 PM |
#2 |
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Default may be the best long term option |
FLPanhandle |
Apr-18-11 12:55 PM |
#3 |
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The Greeks are wise to default |
sixmile |
Apr-18-11 01:06 PM |
#6 |
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They will have a choice. |
former9thward |
Apr-18-11 01:27 PM |
#21 |
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I disagree |
sixmile |
Apr-18-11 01:32 PM |
#24 |
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LOL. Like they guaranteed payment on these bonds? |
badtoworse |
Apr-18-11 01:34 PM |
#26 |
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I think Greece's problem stem from *never* having a large tax base |
muriel_volestrangler |
Apr-18-11 02:34 PM |
#41 |
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If it's tough to live within their means by borrowing |
FLPanhandle |
Apr-18-11 01:31 PM |
#23 |
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Isn't that what Iceland did? I am assuming their debt is to IMF? That |
jwirr |
Apr-18-11 01:14 PM |
#9 |
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The default has tanked Iceland's economy for the time being, but it was |
Lydia Leftcoast |
Apr-18-11 01:26 PM |
#20 |
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Good. I sounds like the default has given them another chance to |
jwirr |
Apr-18-11 01:36 PM |
#28 |
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They have fewer people than the city of Minneaoplis on an island the size of |
Lydia Leftcoast |
Apr-18-11 05:19 PM |
#65 |
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K&R |
leftstreet |
Apr-18-11 01:21 PM |
#15 |
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And the financiers are coming for us next. |
blindpig |
Apr-18-11 01:35 PM |
#27 |
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What do you mean "coming for us"? When it comes to fiscal policy, ... |
badtoworse |
Apr-18-11 01:44 PM |
#33 |
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So whose side are you on? |
blindpig |
Apr-18-11 02:00 PM |
#35 |
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I'm on the side that wants the country to survive intact |
badtoworse |
Apr-18-11 02:19 PM |
#37 |
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The country? What about the people? |
blindpig |
Apr-18-11 02:37 PM |
#42 |
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Thanks, I'll stick with the way things are laid out now |
badtoworse |
Apr-18-11 02:41 PM |
#44 |
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We work for the future or we stand against it. n/t |
blindpig |
Apr-18-11 02:50 PM |
#48 |
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Are those really the only two choices? on second thought, can there even be two choices?? |
yawnmaster |
Apr-18-11 02:54 PM |
#51 |
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The future is a world without capitalism. |
blindpig |
Apr-18-11 02:56 PM |
#53 |
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so your real question is, correct me if I'm wrong, please... |
yawnmaster |
Apr-18-11 03:00 PM |
#54 |
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That's about it. |
blindpig |
Apr-18-11 04:38 PM |
#59 |
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We don't need to borrow and we could pay off our debts tomorrow. |
girl gone mad |
Apr-18-11 04:53 PM |
#62 |
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Hunh? Exactly what promises have we made that we can't afford |
coalition_unwilling |
Apr-18-11 05:10 PM |
#64 |
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hm |
datan |
Apr-18-11 02:29 PM |
#39 |
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Why would I do that? |
blindpig |
Apr-18-11 02:39 PM |
#43 |
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Whatever you are, I'm glad you are not running things |
badtoworse |
Apr-18-11 02:47 PM |
#46 |
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What, you got a problem with sharing? |
blindpig |
Apr-18-11 02:53 PM |
#50 |
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I share lots of things - both my time and money |
badtoworse |
Apr-18-11 03:06 PM |
#55 |
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Most of the Greek debt is held by the Greek banks. I don't have knowledge beyond that on who... |
yawnmaster |
Apr-18-11 02:56 PM |
#52 |
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right |
datan |
Apr-18-11 03:29 PM |
#56 |
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Blow off the debt. n/t |
blindpig |
Apr-18-11 04:40 PM |
#60 |
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I remember two articles from the NYT... |
BlueCheese |
Apr-18-11 11:54 PM |
#70 |
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