Greek crisis at the tipping point: CNN

Have Europe's leaders kicked the Greek can as far as it will go?

Unnervingly, it is starting to look like the answer may be yes. Policymakers this week failed yet again to take decisive action on Greece's debt crisis, rattling markets and prompting billionaire George Soros to brand officials' failure to restructure Greek debt a "mistake."

The central problem -- beyond Greece's running out of money again -- is a standoff between bailout-shy politicians and instability-fearing central bankers. The assumption has been that they would come to their senses and make a deal to forestall catastrophe.

But their little game of chicken souvlaki now threatens to jolt Europe and perhaps the world with a new financial disaster.

On cue, Moody's warned Wednesday that a Greek default – which is looking likelier by the day -- could ripple across the European banking system. It put three big French banks on review for a possible downgrade and warned that other reviews may follow.

Greek Crisis at Tipping Point

This is certainly a situation of wait and see what happens, but it is unchartered territory as I understand, where such a default could have much broader repercussions. The language in this article is quite poignant and dire and though it is good for selling stories, there may be some truth to it, and conditions among Euro countries is not looking too good.

The thing that kills me, is that they frame the issue as being between the banker's and the politicians and completely disregard the opinions and feelings of the tens of thousands of Greek citizens rioting in the streets. I believe they have a pretty huge say in the outcome of any deal.

They don't even mention how said deal effects real people.

reply to post by wisintel


You dont lend someone money when you know they cant pay it back.

Greece is going down, and there is nothing they can do about it.

BBC reporting this....

Greek Crisis: Commissioners 'fear future of eurozone'

EU commissioners have a "profound sense of foreboding" about Greece and the future of the eurozone, a leaked account of a meeting has suggested.

The account, seen by BBC News, said this was in reaction to the "damning failure" of eurozone ministers to agree a new bail-out for Greece last night.

It was written by an official who attended Wednesday's gathering of commissioners in Brussels.

The author warned that the markets would now "smell blood".

I don't want to sound alarmist, but gee, look at the following statement about the threatened viability of the ECB if a default does happen....

It added that any default on Greek government debt - as espoused by Germany - would leave the Greek banks insolvent and "threaten the viability of the ECB [European Central Bank] itself" which owns 49bn euros of Greek bonds.

European Commission President Jose Manuel Barroso was said to be "clearly more worried now than he was a year ago when the sovereign debt crisis first broke".

reply to post by surrealist


Those Reports are just there to scare the People into accepting another Bailout. I.e. Something like "If we don´t bail them out,the World will decend into Chaos" sort of thing.

The Problem they are facing is,that (too) many People know that it will come crashing down soon anyway. Its just a matter of when. And the longer this goes on,the harder the Impact will be when it does.

Another thing is,that noone wants to be blamed,so they drag it out and hope they are far away and not responsible when everything comes crashing down.

Originally posted by downunderET
reply to post by wisintel

 

You dont lend someone money when you know they cant pay it back.

Greece is going down, and there is nothing they can do about it.

Money from our current central banking system can never be paid back by design.

Originally posted by wisintel
The thing that kills me, is that they frame the issue as being between the banker's and the politicians and completely disregard the opinions and feelings of the tens of thousands of Greek citizens rioting in the streets. I believe they have a pretty huge say in the outcome of any deal.

They don't even mention how said deal effects real people.

I think you are wrong, the people really don't have much say other than possibly pushing the inevitable to a head - they are screwed no matter what happens. The country is ultra broke, and continues to spend well beyond it's ability to produce. That is not going to change anytime soon.

Best case scenario for the people is Greece defaults and decides to live within it's means. That would still mean a huge reduction in the citizens standard of living.

Greece poses $41 billion risk to U.S. banks

While fears stirred by Greece’s deepening debt crisis raced Wednesday through global financial markets, a quick check of U.S. banks showed they risk losses on tens of billions of dollars should the Mediterranean nation default on its payments.

U.S. banks had total exposure of $41 billion to Greece by the end of 2010, according to the latest figures from the Bank for International Settlements issued June 9. Most of the financial commitments appear to be indirect.

About 83% is tied to “guarantees” that range from protection for sellers of credit derivative contracts to other obligations owed to third parties. Still the data are murky, according economic consultant Kash Mansori.

The US will not be immune from a Greek collapse, though how much the US is affected will be the question. But I think there may be other factors of contagion involved that will affect the world economy at large.

The Greek crisis is big but just wait until the debt crisis in Spain hits. These are the one two punch that will bring down Europe and the euro. Look for the US dollar to go shortly after the euro. Global Collapse is right around the corner - it precedes the NWO ....

reply to post by MegaMind


That's pretty much what I just said in another thread. S &

How do they feel with ongoing events...well you can view the video or simply jump to 0:37