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Greek debt tsunami could reach US shores!

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posted on Jun, 16 2011 @ 06:14 PM

Greek debt tsunami could reach US shores!

“This fear of Greek contagion breeds not only a credit crisis but a liquidity crisis, not only in Europe,” said Lincoln Ellis, a managing director at the investment firm Linn Group. “It could spread to the American banking sector as well.”

(visit the link for the full news article)

Related News Links:

posted on Jun, 16 2011 @ 06:14 PM
The issue of contagion is a very real threat and noone probably knows to what extent the damage that a Greek default could wreak on banks and economies around the world. The immediate affects would probably be only felt with any adverse significance to those banks that have high exposure to the Greek economy, but beyond that, and possible defaults by other severely affected countries like Spain, Ireland and Portugal, the potential for broader repercussions beyond Europe is probably almost certain.

I posted an article yesterday that claimed US banks have a $41 billion exposure to Greece, which may not be too signficant in and of itself, but what exposures to other affected countries do US banks have? (and other banks for that matter, doesn't China have a lot of investments in Europe?). I've reposted the link again FYI.

I have no proof of my comments above, but just like everyone else, we can estimate or speculate on what the outcome of a Greek default may involve.

My tin-hat comment: A worse case scenario (depending on one's view perhaps) would be contagion that leads to the collapse of the current broken world economy, but finally prompts the creation of a new globalised financial and banking system, a new international economic order, or New World Order if you will, and a new world currency - all governed by a newly created world government, bank and financial institution with statutory authority over nation banks and their economies.

Besides such a radical outcome, does anyone see a way out of this mess, not only with Greece but with the Eurozone countries and other developed nations coincidentally mounting growing sovereign debts?

Does anyone feel the current system is completely broken and sooner or later fail? Or are you confident that these financial crises will be rectified by good fiscal management and other stimulus measures to circumvent the need for a radical new banking and financial system?

The outcome and its solution may need be be far more radical than current efforts to contain defaults and further crises, eventually.
(visit the link for the full news article)

posted on Jun, 16 2011 @ 06:22 PM
Further to the above...

Q&A: Greek Crisis threatens eurozone meltdown

HIghlights from the article:

  • Fears emerge that Greece's debt crisis could infect Europe's banking sector
  • Ratings agency says Greece is on the brink of defaulting
  • Country struggling to make repayments due to high interest rates

posted on Jun, 16 2011 @ 06:41 PM
it wont....

posted on Jun, 16 2011 @ 06:46 PM
hey greece?

china will hook you up with a loan with low down payments and a great interest rate!!!!!

we did and were just sitting all peachy over here in the states!!

yeah it could since the worlds economies are tied together thats what happens when people push globalization

one goes down we all do.

posted on Jun, 16 2011 @ 06:51 PM
I do not understand why the EU decided to prop them up? The UK will have spent 22 Bn ounds by the end of the year on Greece, yet we can berely afford to fund our own schools. It is ridiculous. I wish the UK gov would finally realise that we are now a world power, nor are we anything other than an average developed country.

posted on Jun, 16 2011 @ 07:15 PM
A good video that explains rationally the potential for problems in the US.

Greek debt crisis spurts Europe crash fears

As the Greek government announced a series of austerity measures – with higher taxes, lower salaries and a cut in domestic pensions – the country has erupted in violence, with riots in Athens and the Prime Minister clinging to power in the face of increasing public anger. Former Car Czar Steve Rattner discusses.

Another vid.....

U.S. fears fallout from Greece debt crisis

World financial markets are on edge as the unstable political situation in Greece continued to escalate Thursday. CNBC's Michelle Caruso-Cabrera reports.

posted on Jun, 16 2011 @ 09:46 PM
I think the Euro zone will definitely struggle with Greece going down, just like the USA did when a bank went down.

Think of how big the bank was in the US that triggered global problems.

We now have an entire nation going down, and not some third world nation that no one has invested in.

The US will take a hit, but it I think it will only be relative to the amount we have loaned to Greece, meaning we'll probably write that amount off.

See, the US will not be brought down by Greece, the USA has a much larger, personal problem.

DEBT, the USA's debt is like smoking cancer.

The USA has been smoking the concept of Debt, Credit and corporate riches for decades... in 2008 it got diagnosed with cancer.

Unfortunately for the US people, the US government decided continued smoking was the best alternative.

Your cancer is now out of control and attacking the entire system.

...and im sure we've all had loved ones who believed they were bullet proof after the doctor diagnosed them with cancer.

RIP friends, RIP USA!

posted on Jun, 16 2011 @ 10:04 PM
reply to post by Agit8dChop

The US has over 14 TRILLION in debt, of which nearly 10 TRILLION is publicly held, and over 4.5 TRILLION owed to itself in "intragovernmental debt"

These numbers may seem meaningless to most people, but these are very shocking amounts, when you actually consider how much is involved here, and the interest owed on the debt that is public... Some owned by foreign nations.

It is a recipe for disaster.

At what point will it all collapse and there will no longer even be enough GDP revenues coming in to cover the interest on the debt?

What happens when the USA defaults on 10 TRILLION in public debt?

China has dropped 97% of its holdings in U.S. Treasury bills!

This train is about to runaway, downhill with failed breaks.

posted on Jun, 16 2011 @ 10:35 PM


Just need a push to get that train moving. There are forces currently working furiously to give it that push over the edge.

posted on Jun, 17 2011 @ 12:48 AM

Originally posted by michael1983l
I do not understand why the EU decided to prop them up? The UK will have spent 22 Bn ounds by the end of the year on Greece, yet we can berely afford to fund our own schools. It is ridiculous. I wish the UK gov would finally realise that we are now a world power, nor are we anything other than an average developed country.

Because if they didn't then the dominoes would have fallen already.
There's different factions fighting now.
There's the faction that wants to bring it all down, and bring about their own financial order.
Then there is the faction that wants to prevent a collapse but forge a new financial order out of this mess.

It's nothing short of a global economic war that is being waged in front of our eyes and behind the scenes.
The difference between this and a conventional global war is that the media isn't portraying it as a global war.
Because the media are an active participant in this war.

This isn't about Greece, or Portugal, as in countries. It's about something bigger.
These are just the weakest links in the Euro, and that is why they were attacked by speculators and continue to be attacked by the ratings agencies(which are all Anglo-American run..that should give you a hint about the sides in this war).

Why would Obama want Europe to continue to poor money into Greece? Because it prevents Europe from spending more money elsewhere. That then ties up all of Europe, and the continued economic attacks will bring them all down.

Open your eyes people.
They have already succeeded in turning European against European.
Lazy southerners vs hardworking northerners, for example.

posted on Jun, 17 2011 @ 01:18 AM
Scary stuff!

Mod Note: One Line Post – Please Review This Link.
edit on 17/6/2011 by Sauron because: (no reason given)

posted on Jun, 17 2011 @ 01:59 AM
reply to post by surrealist

Pretty sure the US banks are screwing it up fine all by there self..... they really don't need any help.

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