51–60 of 151 posts
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There is no such proposal to "practically indefinitely extend the terms". Do you actually know anything about this or are you making all this up?
"30 years, and accept a modest coupon of 4.5%", I rest my case. This is comical.
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As far as I can see in other reporting, it's something of the order of a 20% write down (at least for the German Banks) with the EU buying up some of the bonds and the terms being extended to 15 and 30 years. In other words, it is not clear that how this is a default. In fact The Guardian says: German government sources said they had received assurances from the international ratings agencies that they would not rush…
The headline isn't dramatic. Credit rating agencies likely will consider this a default. The article explains it pretty plainly: But that won't stop the credit rating agencies giving Greece's bonds a default rating — this is a coercive deal, which clearly reduces the value of banks' Greek debt. (After all, just look at those haircuts.) A default is when you fail to fulfill your obligations. If I owe you $1.00, but in…
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Wrong. The way it appears now, the debt is going to be repaid over a longer period of time. Your confusion about this indicates that writers are not doing a good job explaining this to people.
Paying me, but not on the originally agreed upon schedule, is still a default. What's wrong about calling it one?
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It just means that instead of having the train quickly derail, they're going to stretch it out like it were a Hollywood movie. Seriously. No one believes that debt is going to be repaid. The politicos are just praying that the train doesn't hit the ground on their watch. If you read the text of this, it just "says" they're going to extend all the terms. But we all know the truth. Shit is going to happen. If for no re…
Wrong. The way it appears now, the debt is going to be repaid over a longer period of time. Your confusion about this indicates that writers are not doing a good job explaining this to people.
FYI there is no such thing as a "kind of" or "selective" default. It's binary. You either pay back creditors what they are owed or you dont. It's rare that a company or country defaults on ALL obligations all at once. As a member of Wall Street, I appreciate the WSJ's noble attempt to sugar coat this (article below) but that doesnt change the facts. Ditto watchandwait below.., glad it finally happened. http://profess…
From the article: if you’re a holder of Greek bonds right now, you have three choices... 1. You can do nothing, and hope that Greece pays you in full and on time. (and other stuff)... The first option is by far the most interesting. No one has come out and said that Greece is going to default on bondholders who don’t exchange their bonds;
IE, the aim is to threaten and arm-twisted big banks into exchanging their bonds without any formal default happening. If we're going by a "gold standard", when Greece actually misses a payment on its bonds, then it will have defaulted. Until then, this is negotiation.
Further from the article: "Is it possible for other bondholders — those who haven’t had their arms twisted — to free-ride on the back of this deal and continue to get paid in full? I suspect that it probably is. Which is one reason why this Greek restructuring won’t be the last."
Again, nothing has happen to the non-big-bank holders. Indeed, they get a convenient free-ride.
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82 Million Soon To Be Very Angry Germans, Or How Euro Bailout #2 Could Cost Up To 56% Of German GDP http://www.zerohedge.com/article/fatal-flaw-europes-second-b...
If only it were that simple. It probably won't only be the Germans who end up footing the bill for this. As I understand it, German banks bought Credit Default Swaps on these loans, so there's no telling who will ultimately end up footing the bill.
The raping of Greece's assets will now begin. EVERYTHING will get privatized, just like a third-world country.
Independently of who is going to benefit from what will happen from now on, the Greek government will be forced sell everything that belongs to the Greek people at ridiculously cheap amounts just to pay back the loans...
It has happened before, everywhere that IMF went...
Translation...Greece gets a bailout for itself, bondholders offered bailout if they commit to increase time-periods of loans, Greece bond rating gets clobbered to default rating....