http://www.bloomberg.com/news/2012-05-13....

Quote:

Greece’s possible exit from the euro area moved to the center of Europe’s debt-crisis debate, with officials beginning to weigh the fallout of a withdrawal even as authorities in Athens struggled to form a government.

Couldn't this be seen as bullish for the Euro? Wouldn't it somewhat insulate the rest of Europe from what is happening in Greece? Maybe they are afraid it would force European banks to recognize there losses on Greek debt Those losses are already baked in anyways. Are they afraid that if Greece jumps ship everybody else will also?

Chris92346 wrote..

Those losses (on the Greek debt) are already baked in anyways.

They are baked into the personal, i.e., not official, behavior of everyone who understands what's going on - and I expect that includes European banksters and politicians, although none will admit it publicly.

However, they are NOT baked in on the official books that are used to determine the solvency of banks and governments. So long as they don't have to confront those problems directly, they can keep kicking the can for some time. Once things become officially recognized, things go to heck very quickly.

If (pardon, when) Greece exits the Euro, forces will be aligned to make sure conditions are a nightmare there.
Imagine if Greece purged its debt, left the Euro and started pulling an Iceland after a period of pain?
Spain and Italy do the exact same thing. That's what scares them.

This ends in one way.

A GLOBAL DAY OF JUBILEE. I have said it before and stand by it. Countries will forgive the debt of each other, and instead chose to completely enslave their inhabitants.

Quote:

Countries will forgive the debt of each other, and instead chose to completely enslave their inhabitants.

What about all those bond holders? Those pension funds? Those running the show would rather see massive a currency devaluation.

No they wouldn't.

This just in, Euro officials discover the sun is hot, but are still divided on whether or not water is wet.

It's not Greece you need to worry about, it's Germany.

Yup, the games being played begin and end in Germany. Germany has been subsidizing all the other Eu countries and have been selling their German manufactured goods back to them.

As those Eu countries falter and can no longer keep their debt load, it comes back and bites Germany in the ass. And takes away the German incentive to carry the pigs. And with France going full retard it is getting even better. Nothing like hardcore socialist that are bound and determined to give everyone everything they want, even though there is no possible way to pay for it.

Quote:

It's not Greece you need to worry about, it's Germany.

Aboslutely. Is it too early to pin a "Your Daily Germany Update: SAVED or not SAVED?" thread?

Pin that bitch, Rvacha, and cue the friggin' monkey....

Quote:

Were the euro zone to collapse, Bundesbank losses could be half a trillion euros -- more than one-and-a-half times the size of the country's annual budget.

Germany is to Europe what China is to the US, the trillion dollar creditor.

Gotta be some sentiment in all the Euro countries to stiff the Krauts!

If Greece does it, that might catch on!

http://www.spiegel.de/international/euro....

Edit: But Greece owes French banks alot too.

Quote:

In a study released last month, another agency, Fitch Ratings, said that Crédit Agricole was the most vulnerable French bank, with around €25 billion in private and public sector liabilities Greece. Both BNP and Société Générale had exposure of around €6 billion to €8 billion, it said.

http://www.nytimes.com/auth/login?URI=/2....

Re-edit: But it was Italy that invaded Greece.

How come no reparations from Italy?

Answer: You gotta follow the money!

Quote:

On 28 October 1940, after Greek dictator Ioannis Metaxas rejected an Italian ultimatum demanding the occupation of Greek territory, Italian forces invaded Greece.

http://en.wikipedia.org/wiki/Greco-Itali....