Greek Financial Crisis

[hullefc]

what do you think they will come up with?

I thimk they will give Greece the necessary funds to stem the crisis. The French have got cold feet at the moment and haven't the bottle to go down the 'Greece must have austerity'. Merkel is on her own. The Portugese, Irish and the Spanish all doffed their caps when Germany shouted 'austerity' and imposed it on their populations. But the moment a country says no and called their bluff it panicked them.

If Merkel insists on the opposite, and decides to let Greece 'go to hell', it could spell the end of the German economic dream. Is she prepared for that?

 

[ToffeeDoug]

It had been said that the Greek economy was in a period of decent growth, so could the drachma hold its own if they left the €?

 

[mikewex]

in our case it was mostly because of a rogue bank and a scandalous government decision to guarantee the debts of said bank - it was internal.

To be honest though, although its a huge amount of money by any standards, the banks all in will cost about €30-35bn. The bulk of the money (we are at about €212bn, less something like €40bn pre-existing) actually went on social welfare, basically helping people during a recession, sort of thing a government is supposed to do.

 

[edge]

I thimk they will give Greece the necessary funds to stem the crisis. The French have got cold feet at the moment and haven't the bottle to go down the 'Greece must have austerity'. Merkel is on her own. The Portugese, Irish and the Spanish all doffed their caps when Germany shouted 'austerity' and imposed it on their populations. But the moment a country says no and called their bluff it panicked them.

If Merkel insists on the opposite, and decides to let Greece 'go to hell', it could spell the end of the German economic dream. Is she prepared for that?

really don't have a clue what to expect to be honest, should be an interesting few days, before Wednesday and are own dose of austerity come along, and attention turns towards that.

 

[Toffeelover]

I thimk they will give Greece the necessary funds to stem the crisis. The French have got cold feet at the moment and haven't the bottle to go down the 'Greece must have austerity'. Merkel is on her own. The Portugese, Irish and the Spanish all doffed their caps when Germany shouted 'austerity' and imposed it on their populations. But the moment a country says no and called their bluff it panicked them.

If Merkel insists on the opposite, and decides to let Greece 'go to hell', it could spell the end of the German economic dream. Is she prepared for that?

I do not think so Mate but could have repercussions for them. The whole Eurozone is charting new waters.

 

[The Esk]

I suspect the ECB will offer further liquidity support for the Greek banks, but at a minimal level. However real support will be conditional upon further agreement on austerity-lite whilst discussions will start on debt writedowns.

If the EU says to Greece you are out, then all pretenses of the EU being in any way democratic are finished.

 

[Toffeelover]

They will either come up with a better deal or dig their heels in and boot us out.If they cut the deal Spain and Portugal will look for the same.I think the Euro bigwigs will bottle it and cave in.

It is not just Spain and Portugal but Italy as well and in the shadows Eire. To stem any problems from those areas I think they could well say,
Weidersehn and Adeui!

 

[mikewex]

If the EU says to Greece you are out, then all pretenses of the EU being in any way democratic are finished.

Why?

 

[marnie]

It is not just Spain and Portugal but Italy as well and in the shadows Eire. To stem any problems from those areas I think they could well say,
Weidersehn and Adeui!

The thing is............Nobody knows..... not even the so called experts.The only thing we do know is that it's gonna be a rollercoaster 48/72 hours.

 

[The Esk]

Why?

Because, the Greek people still wish to be part of the EU and the Euro. The only decision tonight is a rejection of the terms offered by the EU, not membership no matter how the EU tried to spin it.

 

[The Equaliser]

Commie

There appear to be some unholy anti-EU alliances and anti-German sentiments on here, which is a concern. Especially coming from a country which is not in the Eurozone and will therefore not be subject to the same destabilizing effects on the Euro as a consequence of this result that other countries will be.

 

[mikewex]

Because, the Greek people still wish to be part of the EU and the Euro. The only decision tonight is a rejection of the terms offered by the EU, not membership no matter how the EU tried to spin it.

Nobody has really even hinted very seriously that they would be out of the EU, but out of the Eurozone is very possible. Its a very odd definition of democracy though that if Greece wants to stay in, and the rest of the EU nations wanted them to leave, that it would be undemocratic. Do the Greeks have some sort of effective majority here?

 

[The Esk]

Nobody has really even hinted very seriously that they would be out of the EU, but out of the Eurozone is very possible. Its a very odd definition of democracy though that if Greece wants to stay in, and the rest of the EU nations wanted them to leave, that it would be undemocratic. Do the Greeks have some sort of effective majority here?

Sorry lax terminology on my part, there is however no mechanism for leaving the Eurozone, unless I am mistaken?

 

[manxtoffee]

I thimk they will give Greece the necessary funds to stem the crisis. The French have got cold feet at the moment and haven't the bottle to go down the 'Greece must have austerity'. Merkel is on her own. The Portugese, Irish and the Spanish all doffed their caps when Germany shouted 'austerity' and imposed it on their populations. But the moment a country says no and called their bluff it panicked them.

If Merkel insists on the opposite, and decides to let Greece 'go to hell', it could spell the end of the German economic dream. Is she prepared for that?

Germany amongst others have lost and will stand to lose another quite a few billion either way, but it won't dent their economy or future growth, this is a given. It's all about saving face on both sides and more importantly getting the stubborn Greeks to take their full dose of medicine. Turkey's voting for Christmas and all that.

 

[Toffeelover]

Remember it is not just down to Germany and France but all the other members of the Eurozone, now what are their views?