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Mon Jun 29, 2015, 11:27 AM

Five things you need to know about Greece's deepening economic woes

1. Who will lose?
Snip...... if Greece leaves the European Union......

Asset prices will plummet, inflation will soar, unemployment will be rampant and its economy will collapse.

In terms of the pure cash effect, Greece's exit will crystallise losses on all outstanding loans from EU nations through the European Central Bank and emergency funding currently standing at about 331 billion euros ($480 billion).
Germany and France between them account for 176 billion euros ($255 billion), almost half the total.

Then there is the private debt held by banks. Greece owes German, French and British banks roughly 30 billion euros, and the IMF holds a similar level of debt.
If the nation goes into default and is forced out of the eurozone, these countries would have to write off Greece's debts; that is a pretty strong motive to keep Greece in the tent.
http://www.abc.net.au/news/2015-06-29/five-things-you-need-to-know-about-the-greek-debt-crisis/6581818

The rest is a good, short read.

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Reply Five things you need to know about Greece's deepening economic woes (Original post)
dixiegrrrrl Jun 2015 OP
hedgehog Jun 2015 #1
lapislzi Jun 2015 #2
hack89 Jun 2015 #3
enlightenment Jun 2015 #4
closeupready Jun 2015 #5
dixiegrrrrl Jun 2015 #6

Response to dixiegrrrrl (Original post)

Mon Jun 29, 2015, 11:33 AM

1. A good explanation

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Response to dixiegrrrrl (Original post)

Mon Jun 29, 2015, 12:03 PM

2. #3: Goldman Sachs

Just another reason to hate those greedy fucks. I'd like to hope that one day they'll get what's coming to them in the form of torches and pitchforks, but I ain't holding my breath.

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Response to lapislzi (Reply #2)

Mon Jun 29, 2015, 12:32 PM

3. The Greeks went to Goldman Sachs for help in hiding their debt and deceiving the EU

when immoral politicians ask immoral bankers for help then what do you expect will happen? Goldman Sachs was not going to tell the Greek government that they needed to cut spending and reduce their deficits - they were going to say "how can we help you?".

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Response to dixiegrrrrl (Original post)

Mon Jun 29, 2015, 12:36 PM

4. Default and a potential exit from the EU

is survivable. Continuing to serve as a pawn/whipping boy for the troika isn't. I agree with Krugman on this issue.

http://www.nytimes.com/2015/06/29/opinion/paul-krugman-greece-over-the-brink.html?smid=fb-share

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Response to dixiegrrrrl (Original post)

Mon Jun 29, 2015, 12:48 PM

5. This turmoil is likely good for the dollar and the bitcoin.

 

My prediction.

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Response to closeupready (Reply #5)

Mon Jun 29, 2015, 06:37 PM

6. and gold. n/t

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