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Euro zone central banks agreed to exchange their holdings of Greek government debt for new Greek bonds as part of a second bailout program to help the highly indebted nation, German newspaper Die Welt reports, citing people with knowledge of the matter.
The bond swap will generate a profit, said the newspaper report, because the ECB and euro zone central banks will receive bonds with a nominal value of around €50 billion, higher than their current holdings, and such profit would be distributed to governments via the national central banks. Governments then have the option to channel funds on to Greece.
The operation should be completed by Monday, and will pave the way for the bond-swap deal between Greece and its private creditors. The ECB and Bundesbank declined to comment on the report, which has not been confirmed.
A week ago we presented an excerpt from Credit Suisse's most excellent piece "The Flaw" - merely the latest in one of the best overviews of the neverending Greek soap opera by William Porter. Yet every soap opera eventually ends. Although when it comes to Nielsen ratings, the denouement is usually a whimper. In the case of Greece, it will be anything but. Yet listening to the daily cacafony of din from Europe's leaders, who are likely more clueless than the average reader as to what is really going on, one may be left with the impression that there is a simple solution to the problem, and Greece may be "saved... in hours." It can't. In fact, as of today, Porter's s conclusion is: "we are left with a sense that the probability of delivering the largest default loss in history in a disorderly way on or before 20 March has increased relative to doing so in an orderly way."
As a reminder, Credit Suisse was the one smart enough bank which chose to completely ignore day to day newsflow out of Greece as it is literally noise with absolutely no signal. Wish we could say the same for FX traders. As such, CS' "view remains that, in any case, the chance of a disorderly outcome after 20 March is high, so to that extent the immediate events are not really central to our view, but of course are fascinating."
That's how many working-age Americans don't have a job and aren't trying to find one. The increase in people dropping out of the labor market altogether skews the otherwise-positive unemployment numbers released last week. While the jobless rate fell to 8.3 percent in January - a three-year low - it doesn't account for this army of nonworking Americans.
Originally posted by marg6043
reply to post by Vitchilo
When their welfare and government assistance runs out, in the US I guess the government is now counting those unemployed that felt out of the unemployment radar but receiving welfare as having a job.
Because after all they are still getting some kind of monetary incentive. They are getting pay by those that are still paying taxes.
European stock markets finished higher before a meeting of eurozone finance ministers that many hope will finalise a new bailout for Greece...
The UK's FTSE 100 rose 0.7%, while German and French stocks were also higher. Banks on the continent, which hold much Greek debt, rose - Commerzbank gained 3.6% and Credit Agricole climbed 2.5%.
European banks - including Deutsche Bank and Societe Generale - have been rising on hopes a deal may be reached to keep Greece in the euro. Germany's Dax and France's Cac indexes rose 2% last week, while Italy's main share index was up 1.1%.
Greece's stock market was also higher. It rose 3.4% last week - its fifth week of gains - on renewed optimism of a bailout...
...Greek stocks lost 52% of their value last year...
Two of the eurozone's biggest economies have fallen into recession, according to the latest economic figures.
Italy and the Netherlands both saw their economies shrink by 0.7% in the fourth quarter, the second consecutive quarter of economic contraction.
Germany had its first negative quarter since 2009 with a decline of 0.2%, compared with the previous quarter...
Japan posted its biggest ever trade deficit in January, topping the previous record seen during the financial crisis in 2009, Ministry of Finance data showed On Monday, underlining concerns that a persistent trade gap may undermine the country's ability to finance its debt.
The trade deficit stood at 1.475 trillion yen ($18.59 billion), against median market forecast for 1.468 trillion yen, marking a fourth straight month of deficit, as weak global demand and a strong yen hurt exports and robust fuel demand boosts imports.
The New York Post reported Sunday that as unemployment checks run out, many jobless are trying to gain government benefits by declaring themselves unhealthy.
More than 10.5 million people -- about 5.3 percent of the population aged 25 and 64 -- received disability checks in January from the federal government, the Post wrote, a 18 percent jump from before the recession.
Japan reported a record-high balance of trade deficit in January as last year's tsunami combined with floods in Thailand, Europe's sovereign debt crisis, slowing Chinese growth and a soaring yen to leave the world's third-largest economy with its first trade deficit since the last century. Japanese imports last month exceeded exports by ¥1.48 trillion ($18.56 billion), the Ministry of Finance said Monday. Exports fell 9.3 percent because of the disruption of supply-chain processes due to Thai floods, slower growth in China's economy and a weakening euro that made Japanese products more expensive. Imports fell 9.8 percent because of increased demand for energy imports in a country whose nuclear power production levels have yet to recover from the devastating tsunami and earthquakes experienced last spring. Prior to 2011, Japan had not run a trade deficit in 31 years.
Credit rating agency Standard & Poor's recognized these issues on a note Monday re-affirming its negative outlook on the country's AA- sovereign debt rating, which suggested it might downgrade the country if it fails to begin balancing its debt load. Japan's current level of national indebtedness exceeds 200 percent of its GDP, the highest among industrialized nations.
The IMF last month said it may need an increase of as much as $600 billion in lending capacity. The US has said it will offer no more financial support to the fund, but Japan and China have expressed a willingness to do so if Europe itself first takes more steps to deal with its problems.
Originally posted by Surfrat
If Greek vote passes Buy Euro/$
If Greek vote fails Sell Euro/$
the wait is on
Eurozone finance ministers sealed a deal Tuesday morning for a second bailout for Greece, including €130 billion ($173 billion) in new financing.
The finance ministers from the 17 nations that use the euro, known as the Eurogroup, gave Greece the funding it needs to avoid a potential default next month.
While this new deal provides some short-term relief for Greece, difficult days lie ahead as the government tries to trim debt to 121% of the country's gross domestic product by 2020. Greece's debt now stands at about 160% of GDP.
Starting at 4 p.m., the protest march is scheduled to coincide with a vote in Parliament on an emergency bill aimed at slashing state spending further through cuts to pensions and salaries, to which Greece is bound by its most recent bailout agreement." Parliaments is planning on further spending cuts? To what? Zero? Negative? And one can bet their bottom dollar, the tax collectors, already urged to increase their efficiency by 200%, will be present, and certainly not tripling their work output while peacefully consuming lungfulls of tear gas.