Greek Financial Crisis

[dholliday]

Temporary exit for Greeks from EZ?!

5 years.

 

[davek]

5 years.

Euro offer seems huge: €86B bailout. However, not much dignity in that if you have to become a slave for it.

Time to pack this freak show up and start printing the Drachmas.

 

[dholliday]

Time to pack this freak show up and start printing the Drachmas.

I've got nowt against that...at this stage it's all about making sure the poor and low-earners are looked after, and if the best way to do that is to go back to the old currency, then so be it. Euroland can wait.

But if that's not the best way, then Euroland it is (austerity hello).

Any fiscal analysis of this you've seen which supports going back to the drachma?

 

[hullefc]

Temporary exit for Greeks from EZ?!

If I have read it correctly, there is no provision in the ESM to allow debt restructuring. They never put it into the ESM. To get a debt write off they would have to leave the Euro zone.

 

[roydo]

Any fiscal analysis of this you've seen which supports going back to the drachma?

Rely on tourism, shipping, and, er, olive oil to sustain their own country, albeit with a devalued currency being a massive help. Would rather try it myself than continue to be the whipping boy of Northern Europe.

 

[davek]

I've got nowt against that...at this stage it's all about making sure the poor and low-earners are looked after, and if the best way to do that is to go back to the old currency, then so be it. Euroland can wait.

But if that's not the best way, then Euroland it is (austerity hello).

Any fiscal analysis of this you've seen which supports going back to the drachma?

I agree. Any solution that provides the basis for lifting the Greeks out of immiseration is the way to go. Materially this has to be paramount. It's also important though for national psyche that they negotiate to be able to hold their heads high. All told the arguments for exiting now look a lot more persuasive than they did before, and they were pretty strong earlier too.

 

[davek]

Rely on tourism, shipping, and, er, olive oil to sustain their own country, albeit with a devalued currency being a massive help. Would rather try it myself than continue to be the whipping boy of Northern Europe.

As @hullefc has underlined time and again, they wont be walking in the wilderness and short of economic partners.

 

[Peter Karalis]

What does this mean for greeks living in the uk if they leave the EU

 

[roydo]

As @hullefc has underlined time and again, they wont be walking in the wilderness and short of economic partners.

Nope. As you know, I have never been a fan of the Euro. In its current form.

Also, the Greeks,, under their own steam, might collectively make some changes to their economy and stuff, (which is far from perfect), but in the interest of GREECE, not European banks.

 

[roydo]

What does this mean for greeks living in the uk if they leave the EU

They probably wont leave the EU, just the Euro I expect.

 

[Peter Karalis]

They probably wont leave the EU, just the Euro I expect.

ok so i won't be deported.

 

[roydo]

ok so i won't be deported.

Doubt it very much mate!

 

[The Esk]

Euro group to Greece " you owe us €300bn but you have to leave the Euro to get a writedown"

Greece "OK"

Sometime later this year....

Euro group " here, have a 25% write down, you owe us €225 bn instead"

Greece "Erm thanks but given our currency has halved in value we now owe you the equivalent of €450 bn in local currency terms"

 

[roydo]

Trying to remember when Argentina defaulted. I know it was slightly different, in that they wernt in a currency bloc, (I dont think), but politically the two countries are very similar. It all turned out ok I recall, and I would guess, that globally, Argentina were bigger than Greece.

I will ask @bizzaro , unless he is on the currency hedging game tonight.

 

[The Esk]

Trying to remember when Argentina defaulted. I know it was slightly different, in that they wernt in a currency bloc, (I dont think), but politically the two countries are very similar. It all turned out ok I recall, and I would guess, that globally, Argentina were bigger than Greece.

I will ask @bizzaro , unless he is on the currency hedging game tonight.

2001 mate