Post new topic Reply to topic  [ 9 posts ] 
Author Message
 Post subject: IMF warns EU debt crisis may still spread to core
PostPosted: Thu May 19, 2011 9:45 am 
Offline
IMF'd

Joined: Sep 13, 2007
Posts: 31734
Location: Tullamore
http://www.reuters.com/article/2011/05/ ... UN20110513
(Courtesy of Naked Capitalism)
Quote:
By Christiaan Hetzner and Dina Kyriakidou

FRANKFURT/ATHENS | Fri May 13, 2011 6:18am EDT

FRANKFURT/ATHENS (Reuters) - Despite bailouts for Greece, Ireland and Portugal, Europe's debt crisis may yet spread to core euro zone countries and emerging Eastern Europe, the International Monetary Fund said on Thursday.

The stark warning came as government sources in Athens said international inspectors checking on Greece's compliance with its EU/IMF rescue package had found problems and were pressing for deeper spending cuts to cover a likely revenue shortfall.

"Contagion to the core euro area, and then onward to emerging Europe, remains a tangible downside risk," the global lender's latest economic report on Europe said.

A Reuters poll of investors and economists showed an overwhelmingly majority believe Greece will restructure its debt, possibly as soon as later this year. Most fund managers expect Athens to pay back less than half of what it owes.
>>>

_________________
"It is impossible to design a system so perfect that no one needs to be good."

So long and thanks for all the fish.


Top
 Profile  
 
 Post subject: Re: IMF warns EU debt crisis may still spread to core
PostPosted: Fri May 20, 2011 11:20 am 
Offline
Neo Landlord
User avatar

Joined: Nov 29, 2010
Posts: 296
Location: Beyond The Pale
Quote:
Greece Gets Pounded Before Further Bailout?
Friday, May 20, 2011 – by Staff Report

European Central Bank threatens to pull the plug on Greek lending ... The European Central Bank has threatened to stop lending to banks using Greek government bonds as collateral if Athens changes the terms of the debt, a move which could bring down the country's banking system. The central bank is vehemently opposed to a restructuring of Greek debt, worried about a possible chain reaction through Europe's financial system and the losses it would face on the up to US$80bn of bonds on its own books. – UK Telegraph


http://www.thedailybell.com/2349/Greece-Gets-Pounded-Before-Further-Bailout.html


Top
 Profile  
 
 Post subject: Re: IMF warns EU debt crisis may still spread to core
PostPosted: Fri May 20, 2011 12:31 pm 
Offline
Nationalised
User avatar

Joined: Jan 1, 1970
Posts: 23014
ECB being used as a political weapon of mass destruction?

_________________
Follow The Pin - https://twitter.com/dailypinster

"Politicians are always realistically maneuvering for the next election. They are obsolete as fundamental problem-solvers." - Buckminster Fuller

"I was comfortable with a couple of banks being married today, instead i wake up and find I'm married to the banks." - Catbear

Image


Top
 Profile  
 
 Post subject: Re: IMF warns EU debt crisis may still spread to core
PostPosted: Fri May 20, 2011 1:05 pm 
Offline
Under CAB Investigation

Joined: Mar 31, 2009
Posts: 1844
BillyWhelan wrote:
Quote:
Greece Gets Pounded Before Further Bailout?
Friday, May 20, 2011 – by Staff Report

European Central Bank threatens to pull the plug on Greek lending ... The European Central Bank has threatened to stop lending to banks using Greek government bonds as collateral if Athens changes the terms of the debt, a move which could bring down the country's banking system. The central bank is vehemently opposed to a restructuring of Greek debt, worried about a possible chain reaction through Europe's financial system and the losses it would face on the up to US$80bn of bonds on its own books. – UK Telegraph


http://www.thedailybell.com/2349/Greece-Gets-Pounded-Before-Further-Bailout.html


Safe to presume that this is exactly the threat the ECB holds over Ireland, hence the willingness of the new govt to bend to their will.
Question is whether they would/could follow through. What would happen if Greek banks could no longer rely on the liquidity support provided by the kind strangers in Frankfurt? Surely the consequences for the entire eurozone would be so grim that the ECB couldn't follow through. Although calling their bluff would take considerble testicular fortitude.


Top
 Profile  
 
 Post subject: Re: IMF warns EU debt crisis may still spread to core
PostPosted: Fri May 20, 2011 1:14 pm 
Offline
Neo Landlord
User avatar

Joined: Nov 29, 2010
Posts: 296
Location: Beyond The Pale
Open Window wrote:
ECB being used as a political weapon of mass destruction?


Certainly as a weapon of mass subjugation.

Ixelles wrote:
Safe to presume that this is exactly the threat the ECB holds over Ireland, hence the willingness of the new govt to bend to their will.
Question is whether they would/could follow through. What would happen if Greek banks could no longer rely on the liquidity support provided by the kind strangers in Frankfurt? Surely the consequences for the entire eurozone would be so grim that the ECB couldn't follow through. Although calling their bluff would take considerble testicular fortitude.


Safe to assume that our lackeys will continue to do as they are told.


Top
 Profile  
 
 Post subject: Re: IMF warns EU debt crisis may still spread to core
PostPosted: Fri May 20, 2011 4:28 pm 
Offline
Nationalised

Joined: Sep 29, 2010
Posts: 8687
Location: London, innit
Norway Stops Aid Payments To Greece



This article sending tsies sharply higher- euro weaker

http://www.zerohedge.com/article/norway ... nts-greece

and comments from ECB adding to the bid as well:

*WEIDMANN SAYS REPROFILING NO SUBSTITUTE FOR FULFILLING PROGRAM
*WEIDMANN SAYS MONETIZATION OF PUBLIC DEBT CANNOT BE TOLERATED
*WEIDMANN: REPROFILING IMPLIES ECB AID WITHOUT ENOUGH COLLATERAL
*WEIDMANN SAYS REPROFILING RISKS CONTAGION TO OTHER COUNTRIES
*WEIDMANN SAYS GREEK BANKS WOULD BE CUT OFF FROM FUNDING
*WEIDMANN SAYS REPROFILED DEBT IMPOSSIBLE FOR ECB TO ACCEPT
*WEIDMANN SAYS EMERGENCY TOOL EXIT IS QUESTION OF WHEN, NOT IF
*WEIDMANN: `KEY MISTAKE' TO KEEP EMERGENCY MEASURES FOR TOO LONG
*WEIDMANN SAYS FURTHER RESCUE AID SHOULDN'T BE TAKEN FOR GRANTED


Top
 Profile  
 
 Post subject: Re: IMF warns EU debt crisis may still spread to core
PostPosted: Fri May 20, 2011 4:33 pm 
Offline
IMF'd

Joined: Sep 13, 2007
Posts: 31734
Location: Tullamore
But sure they can't stick to the program or speed it up. It's terrible hard and anyway, they might never cut off the emergency measures. Think what would happen then? The euro would lose value, German exports would soar, inflation would rise and so would interest rates rewarding German savers...

Um...

_________________
"It is impossible to design a system so perfect that no one needs to be good."

So long and thanks for all the fish.


Top
 Profile  
 
 Post subject: Re: IMF warns EU debt crisis may still spread to core
PostPosted: Fri May 20, 2011 5:08 pm 
Offline
Under CAB Investigation

Joined: Feb 27, 2007
Posts: 1837
slasher wrote:
Norway Stops Aid Payments To Greece

Norway gave how much to Greece exactly?
I'm led to believe it was a pretty insignificant amount. (Relatively)


Top
 Profile  
 
 Post subject: Re: IMF warns EU debt crisis may still spread to core
PostPosted: Fri May 20, 2011 5:54 pm 
Offline
Nationalised

Joined: Sep 29, 2010
Posts: 8687
Location: London, innit
Braighni wrote:
slasher wrote:
Norway Stops Aid Payments To Greece

Norway gave how much to Greece exactly?
I'm led to believe it was a pretty insignificant amount. (Relatively)

I've no idea ; it's prob more symbolic

however
Quote:
RPT-FITCH DOWNGRADES GREECE TO 'B+'; RATING WATCH NEGATIVE
FITCH SAYS 'B+' RATING INCLUDES EXPECTATION EU AND IMF WILL EXTEND SUBSTANTIAL NEW MONEY TO GREECE

EU CDS: Germany 38.83 +1.0... Greece 1341.33 + 22.4 (after fitch news).. hungary 253.33 +2.7... Ireland 637.17 +10.9.. italy 159.33 +7.0.. Portugal 637.17 +12.6.. Spain 260.33.. UK 59.50 +1.8.. adding pressure to euro.



still only a rumour


Top
 Profile  
 
Display posts from previous:  Sort by  
Post new topic Reply to topic  [ 9 posts ] 


Who is online

Users browsing this forum: No registered users and 3 guests


You cannot post new topics in this forum
You cannot reply to topics in this forum
You cannot edit your posts in this forum
You cannot delete your posts in this forum

Jump to:  

Click for Latest Posts LATEST POSTS Click for Forum List FORUMS   

Follow, Retweet @dailypinster

  

Pyramid Built, Is Better Built!