Macdon, there are solutions, and we must bring them to light, even if it is difficult to see them materialize, at least help us to see clearly the situation
im assuming the question is how to get greece out of this mess and not how to increase the euro.. so ways to help greece.. the main complicating factor with helping greece is that anything that the eurozone does to help greece using financial controls effects the entire eurozone.. what needs to happen is they need to restructure there debt obligations.. halt short selling .. drop a ton of nonsense spending over a period of 15 years or so to get back to 60%.. they need to raise taxes.. tax importants and apply subsidies to exports.. they need goals to pay down debt quickly..
common sense really.. cut spending.. apply spending to debt .. paydown debt to gdp ratio.. more taxes.. eurozone needs to drop rates.. .. anything tho seems logical that the only thing that will happen is euro will be crushed by these countries problems or they will be removed or euro will dissolve.
I am getting tired about the Greece situation there is all that people is talking about. They need to make a decision, but they need to make it right now, because all the wait is making the markets crazy. So I really think they will help Greece but they should really tell it now, so investors know the conditions of the help.
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Joined Nov 2008
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Status: Tech Analyst- Right 50% of the time
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It is not just Greece that pose as a major problem to the euro... So even if they fix Greece they still have problems like Spain. 20% unemployment is worse than what the USA ever was.... See the link below...
It is not just Greece that pose as a major problem to the euro... So even if they fix Greece they still have problems like Spain. 20% unemployment is worse than what the USA ever was.... See the link below...
Greece needs to be ejected from EU there is probably no other way .
Now the Government has to accept some restrictions to cut down the debt and people go to strike...they probably just too lazy. If they want our money they better start working.
I would suppose you mean by 'real' as actual % that are unemployed versus the measured government statistic. For that actual % I could not really say for either Spain or USA.
However, what is able to be compared is the measured which shows Spain just over 20% and USA just under 10%.
In the measured unemployment rate Spain is significantly more stuffed than USA. Whatever the 'real' is, is probably a comparable increase for both countries.
I am getting tired about the Greece situation there is all that people is talking about. They need to make a decision, but they need to make it right now, because all the wait is making the markets crazy. So I really think they will help Greece but they should really tell it now, so investors know the conditions of the help.
now also the Deutsche Bank, Allianz and the Münchner Rück are speaking about a loan of 1 bln € - so they I think, now we can sure that there will be no debt restructuring and that the investors will loose no money - this financial institutions would not invest some money if they where not sure about that they get it back.
so now it seems, that Greece is saved for the next months/years and that the insolvency of Greece has adjourned...
and last but not least the investors, who bought the greece bonds without any control can get the feeling that we all live in a world without any risks...
Now that Greece is finally getting a lot of help, the investors have doubts about the euro and the help and the euro is going down at the time of writing the euro is at 1.3193 and it seems that the 1.32 level is really hard to break. Will see what happen with Greece and the austerity plan
today the greece people demonstrated against the aid-package and the cost-cutting program.
There were killed 3 persons till now.
I'm a little bit surprised that there is so much selling pressure on e/u in the last days - I expected a small recovery...but the market makes the trend
I'm a little bit surprised that there is so much selling pressure on e/u in the last days - I expected a small recovery...but the market makes the trend
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The problem is not just Greece...
Spain, Portugal, Romania and other southern countries of the euro currency all have VERY significant financial problems (Greece is just the worst).
The euro is presently strongly over valued in my opinion, as it's just that until very recently, the whole world has concentrated on the strongest economy (Germany) within the zone to determine the Euros value. This obviously ignores common sense, but, try and think of a time where financial competency has ever been used for countries other than Germany (and to a lesser extent France and Italy).
Hence like I did in an earlier post I am predicting a slide in the Euros value, similar in length of time (8 years) to its rise. Unless other northern euro countries take on the currency (Britian, Sweden, Norway, etc...).
You seem to forget, some of the FUKS countries are in a worse or as bad shape as Greece. UK – has a debt similar to Greece, but is better enabled to cope with it because of the fact that they have *their own* currency. Iceland is bankrupt and another FUKS country, Sweden was in a similar to Greece in the 90s but they too had control of *their own* currency.
To assist Greece, the euro should be devalued and interest rates rise dramatically. Oh yeah and kick those commies out. AFAIC, communism should be outlawed as it’s a political form of theft. If you earned $1500 a week, I earned $1200 and Lazy Larry earned $300 and along comes Karl Commie and says you give $500 and I give $200 to Lazy Larry, is not that theft?
Anyway, back to the euro, it just cannot cope with different types of economies as one country may be in recession and the other booming, no matter how strong they may be.
I did not vote in the poll as I believe to assist Greece, the euro should be devalued and interest rates rise dramatically, but since that isn’t going to happen, the best thing for Greece and any other country for that matter, is to get out of this neo-communist political union..
Spain, Portugal, Romania and other southern countries of the euro currency all have VERY significant financial problems (Greece is just the worst).
The euro is presently strongly over valued in my opinion, as it's just that until very recently, the whole world has concentrated on the strongest economy (Germany) within the zone to determine the Euros value. This obviously ignores common sense, but, try and think of a time where financial competency has ever been used for countries other than Germany (and...
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yes, I think too that the euro is overvalued at the moment, maybe at 1.20-1.25 it has reached its real value, maybe we will see also a time with an undervalued euro in the zone around 1,10.
Romania is not a member of the euro-zone yet, they will get the euro not before 2014. And Portugal has really problems like greece, I think that Spain is situated a little bit better but has still problems.
I expected a recovery of the e/u because with the aid-package there was eliminated some insecurities about what happens with greece.
The aid-package was also nearly tripled, now with that damn package the eu and the imf guarantees for nearly 1/3 of the whole greece debt...
You seem to forget, some of the FUKS countries are in a worse or as bad shape as Greece. UK – has a debt similar to Greece, but is better enabled to cope with it because of the fact that they have *their own* currency. Iceland is bankrupt and another FUKS country, Sweden was in a similar to Greece in the 90s but they too had control of *their own* currency.
To assist Greece, the euro should be devalued and interest rates rise dramatically. Oh yeah and kick those commies out. AFAIC, communism should be outlawed as it’s a political form of theft....
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that is exactly the problem of the euro, with the criteria of Maastricht the EU tried to avoid this strong differences of the economies, but like we can see the criteria had nearly no effect... :-(
excuse my ignorance, but why should the interest rates rise dramatically, would it not be better, for handling the debt, if they are low?
I don't think that the Greeks will continue to cooperate with the Greek politicians.
I think now in Greece the majority finally understood that all the established Greek politicians are thieves, they created the debt problem and they stole the money for themselves and their bosses.
People now increasingly understand that the central bankers don't want to help them but they want to help their own interests.
Their interests range from acquiring more geopolitical control over Greece to the destruction of euro. They have different scenarios not only one.
Conclusion the debt crisis has a long path to go.
Remember "the money as a debt" is a root cause and will be a root cause, people worldwide must understand this.
People must understand that they must support "the currency as a propriety of the citizens" way of creating and using currency.
This weekend the Eu is creating a financial stability plan, thats mazbe provides the following mechanism:
1. Euro-Bonds, so that all countries guarantees the debt (I have no idea how the german government will explain such a plain to his tax payers.
2. The ECB or an european stability fonds are buying the bonds of the "weak countries" as Greece, Portugal and Spain in the secundary market (it`s prohibited for the ECB to do so on the primary market.
However I am really excited which plan gets created- we will know more on sunday.
p.s. the eu-contract prohibites direct helps for other eu members (there are allowed only in case of a natural catastrophe); and the strictly prohibite that the eu members are guaranteeing for the debt of other members.
Prof. Franz Jaeger from the University of St. Gallen says that Greece has to left the Eurozone
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I do understand that a large portion of the problem lays with the Greeks themselves, but, as always there's a lot more to it than meets the eye, Greece was stripped from very viable industry early on joining EU, and the common currency idea was a negative for the poorer countries.
If you really think the EU is doing Greece a "favor" getting it out of the mess, think again, only a bit deeper this time, there's no free favors in this world.
I do understand that a large portion of the problem lays with the Greeks themselves, but, as always there's a lot more to it than meets the eye, Greece was stripped from very viable industry early on joining EU, and the common currency idea was a negative for the poorer countries.
If you really think the EU is doing Greece a "favor" getting it out of the mess, think again, only a bit deeper this time, there's no free favors in this world.
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no, i don't think that the EU is doing Greece a "favor", to the contrary, I think that for Greece it would be better if they would declare bankruptcy - in the first months this would be really hard for them, but in the view of some years Greece would have many "benefits" from a default.
The EU is only interested to save their banks and other investors and last but not least to save the Euro, and of course also not to loose their "political dream" of a united europe.
