It looks like you're using an Ad Blocker.

Please white-list or disable AboveTopSecret.com in your ad-blocking tool.

Thank you.

 

Some features of ATS will be disabled while you continue to use an ad-blocker.

 

Why U.S. Banks and Greek Debt Will be the Toxic Trigger

page: 1
7
<<   2 >>

log in

join
share:

posted on Jun, 17 2011 @ 08:24 AM
link   
One of the reasons that US will be involved into another financial crisis this time directly global is because the Greek debt is tied to three of US big banks in the nation.


Will a hidden link between the Greek debt situation and the U.S. banking system ignite the next global credit crisis?

The odds of the "next" global credit crisis are increasing with each new day, and with each new revelation. And escalating fears are hitting worldwide stock markets hard.


Something that is not publicized by the media and neither the government.

But we all know that Obama is doing everything it can to get the UK to work on a bailout package to Greek.

With Greek on the brink of collapse could take down US economy and the IUK.

Even with all the bailout money that the big US financial institutions took from tax payer money they are still weaker than ever due to the Greek situation.

I guess the economic global link has been weaken even more after the US economic collapse that took the global banks with it.

Just like in the US the Greek government is the biggest employer of the nation and just like America they can not sustain their debt.

Sounds familiar?

The Scary Facts About Greece's Finances


One in three Greek workers is employed by the government. As austerity-mandated layoffs have progressed, Greece's unemployment rate has zoomed from 11.7% in the first quarter of last year to the record 16.2% rate recently reported.

And given that government spending is still at 46.8% of gross domestic product (GDP), additional budget cuts will be coming - meaning Greece's national jobless rate is certain to increase.

So is the national anger level.


moneymorning.com...




posted on Jun, 17 2011 @ 08:33 AM
link   
It seems to me that we are verging yet again on another collapse as those in charge scramble to buy yet another delay on what seems like the inevitable.

I watched to united front that Merkel and Sarkozy attempted to put on today to shore up market confidence.. I guess they'll have brought enough time to cobble something together by the end of the weekend.

But really.. how long can this last? and where do we go next..



posted on Jun, 17 2011 @ 08:40 AM
link   
They could just abandon the Euro and start their own currency might screw the Euro but might keep employment up and if you know what your doing you can sort out the debt resonably easy



posted on Jun, 17 2011 @ 08:40 AM
link   
reply to post by thoughtsfull
 


I know, no wonder our president seems so interested into bailing out Greek, actually he is trying to keep the American people from finding out how bad linked to Greek economic our too big to fail are.

Incredible. After three years our economy is not better than the day it fail.


edit on 17-6-2011 by marg6043 because: (no reason given)



posted on Jun, 17 2011 @ 08:59 AM
link   

Originally posted by marg6043
reply to post by thoughtsfull
 


I know, no wonder our president seems so interested into bailing out Greek, actually he is trying to keep the American people from finding out how bad linked to Greek economic our too big to fail are.

Incredible. After three years our economy is not better than the day it fail.


edit on 17-6-2011 by marg6043 because: (no reason given)


And after that amount of time they still lack real methods to deal with the situation!

I think that is the element that I find most puzzling... no one seems to have formulated a real recovery strategy which seems utterly bizarre.

Either they are deliberately sabotaging each others recovery to try to be number one or stupidly undermining each down (and by default themselves) in their attempt to scrabble out of this mess.. I am not sure which but lean towards the first notion.



posted on Jun, 17 2011 @ 09:04 AM
link   
reply to post by thoughtsfull
 


Easier scapegoat, my friend is telling the American people or hinting to the American people that Obama is surrounded by the wrong people in his financial team.


Still this is serious news, the more the markets and investors get to the realization that we may face another financial downfall due to Greek the more congress will be pushed into bailing out the nation.

Now how much debt can the American people can support with our own unemployment rates at 9 percent, (and that is with sugar coating).



posted on Jun, 17 2011 @ 09:05 AM
link   
Hi Marg,

Good find. I clicked on the link to Shah Gilani's article though and it appears it is the largest 3 French banks who have the most exposure to Greece. He doesn't elaborate on the hidden link between Greece and the U.S. - I assume it's via the 3 French banks ?

As for those unemployment figures - bet they're fudged also. When living in Spain the quoted numbers never truly reflected the youth unemployed and/or people who had worked on the sly for years but were now out of work permanently - particularly construction workers/ summer tourist seasonal workers.



posted on Jun, 17 2011 @ 09:23 AM
link   
reply to post by slidingdoor
 


I am afraid that the big banks or (financial institutions) are American base banks that have links through global investments, remember that when the US economic collapse it was not only the too big to fail the ones that got hit but all those investment banks in EU linked to US, actually it was the US the one that started the global collapse, even China was not exempt from it.

Remember the rush of tax payer dollars quietly from the US into EU diring this crisis?

The problem is that all this links were covered up to avoid the American people from know how big is the sell out of our own economy.

I will dig into a littler bit more to see which American banks are involved.




edit on 17-6-2011 by marg6043 because: (no reason given)



posted on Jun, 17 2011 @ 09:28 AM
link   
Found another article, I guess the "experst" can only "guess" how big the link to actuall US banks is comparing the exposure to that of Germany or France.



www.alsosprachanalyst.com/economy/greek-tragedy-european-banks-vs-us-banks.html#ixzz1PXl4H8P5

European banks, including German ones like Deutsche Bank, hold many billions of euros in Greek government bonds, and the banks would lose big if those debts were restructured. For the moment, Europe’s solution for Greece is, essentially, Mr. Ackermann’s: more bailout money and more austerity — an approach that some economists say only buys time without offering any hope of recovery

Curiously though, the total exposure of banks in the United States is higher than German banks, as I have already pointed out. US banks’ total exposure of Greece amounted to around US$41 billion. But the kind of exposure US banks have are rather different.


See how it tells its higher but actually doesn't tell which banks or how big is the link.



posted on Jun, 17 2011 @ 09:29 AM
link   
I would hazard a guess , the usual suspects with regards to which U.S. banks/financial institutions are involved ....

Goldman Sachs - didn't they help Greece into the Euro way back when through derivatives?

JP Morgan and possibly Citibank would be my others if only for their global presence.



posted on Jun, 17 2011 @ 09:35 AM
link   
reply to post by slidingdoor
 


You forgot Bank of America.

Actually you got it right as they were the ones that did the most damage in the EU economic dawnfall.



posted on Jun, 17 2011 @ 09:43 AM
link   
Has there ever been 1 country on Earth that ever sustained itself with only a private sector economy?

Nope.

We were smart and cut down to near nothing then used our money abroad to invest/loan/buy in every country on Earth. We can't collapse...technically we own everyone now.

The US has no debt. Not 1 penny.

The Federal Reserve is a private corporation. It's in no way affiliated with Congress. Congress can't control it, can't audit it....why? (its a sham) Like you handing your neighbor pieces of toilet paper for trade to get his tomatoes. You could switch to handing him JC Whitney catalogs for his tomatoes tomorrow...He can wipe his rear with either.



posted on Jun, 17 2011 @ 09:45 AM
link   

Originally posted by vkturbo
They could just abandon the Euro and start their own currency might screw the Euro but might keep employment up and if you know what your doing you can sort out the debt resonably easy


If its reasonally easy, please explain how you would do it?

I see two options:

1. Balance the budget within a year or two. This will require massive fiscal restraint and will be very unpopular with the masses, as we have seen. It will be a difficult road, but the only one i see possible. This will allow them to again stand on their own feet

2. Ditch the euro, default on their loans and go their own way. However, if they cave into public pressure and do not carry though with the austerity measures, the economy will never recover. In order to pay for their massive deficit budgets, they will no no choice but to print money, causing massive runaway inflation.

They are screwed. Their ONLY choice is to buckle down and the government needs to stand its ground and not cave into the protesters.



posted on Jun, 17 2011 @ 09:51 AM
link   
This article puts Goldmans well and truly in the frame back in 2010 - but any purchases they may have made as a good will gesture will be much further down the chain by now and off loaded .

www.independent.co.uk...

Was trying to google who were lead managers on Greek governement debt and Deutsche bank came up - unfortunately it was an F.T. artcicle (subscription only) so no link. Any other ideas for finding out the lead managers of various debt instruments issued by Greece ? IMHO find the Leads and co-managers and we may find the more exposed ones - subject to off-loading in the secondary market to some poor other schmucks.



posted on Jun, 17 2011 @ 09:51 AM
link   
U.S. Banks’ Greek Risk ‘Lot Less’ Than $33 Billion, Schorr Says



www.bloomberg.com...

U.S. banks face “a whole lot less” risk to a Greek debt restructuring or default than implied by the almost $33 billion in “guarantees extended” listed in a recent report by the Bank for International Settlements, according to Glenn Schorr, an analyst at Nomura Holdings Inc.

The $32.7 billion figure, which made up the majority of “other potential exposures” of U.S. banks to Greece listed by the BIS as of Dec. 31, doesn’t include hedges or collateral U.S. banks have in place on those guarantees, Schorr wrote today in a note to investors.


is it really "a lot less" ???

we shall see when it all goes broke !


i think there's a lot of "hidden" and "private" investments like private funds.

they will ALL be shouting soon !



posted on Jun, 17 2011 @ 10:26 AM
link   
reply to post by nightbringr
 


Its hard when most of the government budget in Greek goes to pay for the population employment the meaning of austerity is to increase unemployment higher than what it is right now at 16%, then what the government is going to do with the poverty levels in the unemployed? start welfare to drain the gains from cutting jobs?

This is what could be happening in the US very soon.



posted on Jun, 17 2011 @ 10:28 AM
link   
reply to post by xuenchen
 


Don't worry the big to fail elites will have congress in not time bailing them out at the expenses of tax payer dollars, they already had shown to the American slaves that they will never run out of wealth.



posted on Jun, 17 2011 @ 10:51 AM
link   

Originally posted by Pervius
Has there ever been 1 country on Earth that ever sustained itself with only a private sector economy?


Hong Kong comes close. Minimal government, income taxes only on the rich.



posted on Jun, 17 2011 @ 11:00 AM
link   
reply to post by nightbringr
 


There's another option that few world leaders have the balls or imagination for. Disempower the banks! Including national banks. Demand the bail out money back! Tell them they have failed to stabilise global fiscal uncertainty and are therefore not fit for purpose. Impose austerity packages on all banking institutions and reduce the burden of interest on both the individual and the collectively owned state.



posted on Jun, 17 2011 @ 11:05 AM
link   
reply to post by marg6043
 


I agree. And when one third of the populace is employed by the government, this is a big problem.

One hope is that some of these government employees will have had some forethought (Prometheus!), and after being laid off, might have enough money put aside to start new businesses. A stretch i know, and im sure the climate is terrible for starting up from scratch, but im not sure what else can be done at this point. My heart goes out to the honest, hard working Greek citizens suffering.



new topics

top topics



 
7
<<   2 >>

log in

join