Hungary faces crisis as traders fear bond debt default, page 1
Pages:
ATS Members have flagged this thread 0 times
Topic started on 4-1-2012 @ 10:14 PM by surrealist
Hungary faces crisis as traders fear bond debt default

Hungary was forced to cancel a bond swap auction amid an escalating financial and political crisis that investors fear could trigger another dangerous shockwave in Europe.

The Budapest government saw borrowing costs soar and the currency plunge as traders bet that international authorities may abandon Hungary, letting it become the first European Union country to default on its debts.

The florint fell more than 1pc to a record low against the euro and bond yields soared over 10pc. The Hungarian government, which has defied Brussels by introducing a raft of radical constitutional reforms, called off its plans to swap old debt for new because it would be too expensive.

Traders, already rattled by the advancing eurozone debt crisis, including a drastically discounted rights issue by UniCredit, were unnerved by the emergence of a new front in central Europe. France's CAC index fell 1.6pc, while Germany's Dax and the FTSE 100 dropped 0.6pc each.

Elsewhere, Spain's banks will be required to find an extra €50bn in provisions against potential losses from devalued property, as reported in the Financial Times.

"These events can have a habit of sparking up from being 'too local and too small' for major players to care about to sudden more unpredictable eruptions of risk contagion," 4Cast analysts said in a note.

Benoit Anne, of Societe Generale, said in a note: "We are very near boiling point in Hungary with a crisis that may escalate into something much more serious than a simple macroeconomic crisis... The EU is extremely concerned about the latest political developments and the potential EU response will – no doubt – be harmful to investor confidence."

Hungary, which must roll over nearly €5bn of external debt this year, is due in February to start repaying a loan to the International Monetary Fund (IMF) that saved the country from financial collapse in 2008.

Borrowing costs rose in other central European countries today including Poland and Czech Republic. There are also fears about the exposure of European banks to Hungarian debt, particularly Austrian and Italian institutions.


So Hungary is in some deepening poop. Bond yields soaring over 10 per cent and a political crisis, together triggering cancellation of their bond swap auction. Is this the start of an escalating EuroZone wide bond crisis? It's gonna get interesting with a number of EZ countries selling bonds over 2012, a large chunk of which has to be sold in January.


reply posted on 4-1-2012 @ 11:14 PM by Narcissous
I live in this craphole, and I can tell you, this country isn't cool for like a hundred years, but this nutjob is hecking up everything he and his ragtag band can. want to see what REX84 can potentially do to the population, look at us. opposite fraction leaders get locked up without trial, people can barely buy food, while others shower in wealth. and when you say things like these, you get slammed. i do this because people have to stand up and send away this madman. Let us fry, brothers, but the things he does, will eventually have consequences in other countries.
but I'll share a few neaty treats about this country.
a kilogram of bread costs about 300 forints.
the minimal salary is 60grand, but you tax down approx 25 of it, which leaves you with mere 35grand to enjoy all the pleasures of life.
let's say you eat the value of a kg of bread, everyday which is abnormally not enough. meat, and dairy products are luxury for most people, because they are very very costly not to mention fruits and vegetables. this thing takes away another 9grand
you have 26.
the lowest of apts cost about 15grand a month to rent
you have 11 frickin' grand left. and you have achieved this financial stability by living like a very cheap caveman.
if you've ever lived on your own, you certainly must know that you need clothes, medication, and such from time to time. both are abruptly costly compared to other countries.
but let's assume that you have clothing, and other various accessories needed for your basic survival, and you do not even need medications(which is, under these circumstances(people stop the heating in the midst of winter, because they have to choose between it and food) is a damn miracle)
you have ten grand
now if we split it up to the four weeks(assuming that you plan and do not spend it all in one place) you have 2.5 grand for a whole week
assuming that you are an inverted weirdo like me, let's say that you like to spend your free money on beer and tobacco.
if you smoke a pack a week, you will just have enough money remaining to buy a beer every day.

You would be amazed how many people are actually living a life like this.

IF you have a job. IF. because that is also becoming a luxury. in fact unemployed people must work as streetcleaners. every morn i see dozens of them. why? because our gov't refuses to make jobs. the point is that there's a massive unemployement rate, and all the big guys are like: if you don't like it, we'll fire you and get another one.

Want to see NWO? here it is
Pages:     ^^TOP^^



Mainstream Media IGNORES Iceland Revolution
  Posted 9 days ago with 96 member flags
Here Are The 5 Worst Places To Be When The Dollar Collapses
  Posted 5 days ago with 19 member flags
The Coming Canadian Housing Crash
  Posted 15 days ago with 18 member flags
What is *THE* domino you\'re waiting for, and why?
  Posted 9 days ago with 17 member flags
Google Trends - The Powers That Be should be scared
  Posted 2 days ago with 16 member flags
Greece bank run
  Posted 13 days ago with 15 member flags
25 May 2012 (the day europe collapsed)
  Posted 4 days ago with 14 member flags
Facebook insider sales are huge red flags
  Posted 11 days ago with 13 member flags