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Greek Referendum On Eurozone Deal


Parsad
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How stupid can you get?  Greek's Prime Minister has announced that Greece will take the Eurozone aid package to a referendum.  This is going to blow up in everyone's face.  While I'm sure the greek populace is tired of the chaos, there is just enough morons there to destroy any progress and send them back to the stone age.  Cheers!

 

http://www.theglobeandmail.com/report-on-business/international-news/greece-gambles-on-referendum-for-new-debt-deal/article2220043/

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Greece can go out of EURO anytime and the impact won't be big at all.

 

Well, if Greek leaves the Euro and saving accounts would be switched to the new Drachme what do you think would happen in Portugal, Spain and Italy? You'd see a run on the banks because any sane saver in these countries would immedietly transfer his accounts to a bank in a save country like Germany or Switzerland. You'd have to impose capital controls and border controls again and thereby putting the whole integration process in jeopardy.

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What are they thinking? I don't see EU will let them drag this on to Dec let alone Jan. The next EU response will be explosive.

 

Easy to see what they are thinking.  They are already in a horrible situation with depression like unemployment.  Why would people sign off on austerity measures?  If I was Greek, I'd vote to tell the rest of the zone (and bondholders) to fuck off and print money till the cows come home. 

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No doubt that, if given the option, the Greek population will vote down any additional austerity measure.

 

Right now Angela Merkel et al must be busy sending out emails and memos all titled "Dude... WTF??" (or however you say that in German).

 

So what was the point of all the negotiations if the goal was to then turn down the financial aid they're ready to send your way? Which is what the Prime Minister is inherently doing by putting this up to a referendum. Should be interesting to see what will happen.

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No doubt that if given the option the Greek population will vote down any additional austerity measure.

 

Right now Angela Merkel et al must be busy sending out emails and memos all entitled "Dude... WTF??" (or however you say that in German).

 

So what was the point of all the negotiations if the goal was to then turn down the financial aid they're ready to send your way? Which is what the Prime Minister is inherently doing by putting this up to a referendum. Should be interesting to see what will happen.

 

Lol, guess papandreou is hoping for buy-in. 

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No doubt that if given the option the Greek population will vote down any additional austerity measure.

 

Right now Angela Merkel et al must be busy sending out emails and memos all entitled "Dude... WTF??" (or however you say that in German).

 

So what was the point of all the negotiations if the goal was to then turn down the financial aid they're ready to send your way?

 

To get a better deal!  Look how much they've talked down the rest of Europe so far.  Papandreuo et al are waking up to how much leverage they have.

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To get a better deal!  Look how much they've talked down the rest of Europe so far.  Papandreuo et al are waking up to how much leverage they have.

 

Hopefully you are right, but it could also be he's cow-towing to the populace and risking the Greek bailout.  Cheers! 

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No doubt that if given the option the Greek population will vote down any additional austerity measure.

 

Right now Angela Merkel et al must be busy sending out emails and memos all entitled "Dude... WTF??" (or however you say that in German).

 

So what was the point of all the negotiations if the goal was to then turn down the financial aid they're ready to send your way?

 

To get a better deal!  Look how much they've talked down the rest of Europe so far.  Papandreuo et al are waking up to how much leverage they have.

 

All deal will come with spending cut, so the end result is the same. The spoiled won't accept the cut.

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No doubt that if given the option the Greek population will vote down any additional austerity measure.

 

Right now Angela Merkel et al must be busy sending out emails and memos all entitled "Dude... WTF??" (or however you say that in German).

 

So what was the point of all the negotiations if the goal was to then turn down the financial aid they're ready to send your way?

 

To get a better deal!  Look how much they've talked down the rest of Europe so far.  Papandreuo et al are waking up to how much leverage they have.

 

All deal will come with spending cut, so the end result is the same. The spoiled won't accept the cut.

 

The spoiled also may not negotiate in good faith.

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They are not stupid, just realistic. The PM knows that if they cannot implement the austerity measures successfully they will be back asking for more help eventually and the austerity cannot be carried out without the support of the people.

 

Greece's problem are indicative of the problems facing other countries if they do not arrest the trend of rising debt/GDP ratios soon. The 50% debt haircut brings Greek sovereign debt down to 120% of GDP for now - but unless they can balance the budget going forward, this ratio is set to rise again. The perverse thing is that if they balance the budget but do it at the cost of causing an economic contraction, the debt ratio still rises!

 

What is scary is that Italy is already at 120%, and the less indebted countries in Europe will have to increase their ratios to provide the support needed to the EFSF and their own banks. So far, except for the Greek debt writedown, none of the schemes proposed in Europe solve the fundamental problem of overindebtedness - they are just rearranging chairs. Even the Greek debt haircut has to deal with unintended consequences of Greek banks and pension funds getting hit on their bond holdings - presumably the Greek govt will have to borrow to fill up these holes!

 

It's a crazy situation. Probably explains why Prem remains worried.

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The only way out is to let Greece and other countries who will not accept austerity by choice is to default.  This is the way it has been dealt with in the past as it cleans out the old debt and gets the economy going again.

 

Packer

 

Banks are undercapitalized and a failure would mean 2008 x2. Nobody wants it to happen and it's costly in terms of moral damage and a drag on the economy.

 

BeerBaron

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"I always thought myself in the position described by Woody Allen in one of his movies: ―More than any other time in history, mankind faces a crossroads. One path leads to despair and utter hopelessness, the other to total extinction. Let us pray we have the wisdom to choose correctly."

 

Warren E Buffet 1985

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"I always thought myself in the position described by Woody Allen in one of his movies: ―More than any other time in history, mankind faces a crossroads. One path leads to despair and utter hopelessness, the other to total extinction. Let us pray we have the wisdom to choose correctly."

 

Warren E Buffet 1985

 

Where is this from. I would like to read whatever article this is attached to.

 

Greece has everyone by the balls, but that doesnt mean things are peachy for them. My guess is there will be hell to pay if the continue screwing with the markets / euro. They have been in default for 160 out of the last 200 years, but being broke and shunned by the world really sucks once you have had a taste of the rich life. I was enjoying the rally....

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I thought Greece was the big winner with the recent announcements and celebrations... they were getting 50% debt forgiveness. Obviously this is not the case. Taking this to a referendum pretty much means it will not be approved (who agrees to get whipped).

 

Best line I have heard in a while was AZ Value: "Right now Angela Merkel et al must be busy sending out emails and memos all titled "Dude... WTF??" (or however you say that in German)." I am still laughing my ass off...

 

Clearly I do not understand pretty much everything that is going over there.

 

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"I always thought myself in the position described by Woody Allen in one of his movies: ―More than any other time in history, mankind faces a crossroads. One path leads to despair and utter hopelessness, the other to total extinction. Let us pray we have the wisdom to choose correctly."

 

Warren E Buffet 1985

 

Where is this from. I would like to read whatever article this is attached to.

 

Greece has everyone by the balls, but that doesnt mean things are peachy for them. My guess is there will be hell to pay if the continue screwing with the markets / euro. They have been in default for 160 out of the last 200 years, but being broke and shunned by the world really sucks once you have had a taste of the rich life. I was enjoying the rally....

 

http://beginnersinvest.about.com/gi/o.htm?zi=1/XJ&zTi=1&sdn=beginnersinvest&cdn=money&tm=4&f=10&su=p284.12.336.ip_&tt=2&bt=0&bts=0&zu=http%3A//www.berkshirehathaway.com/letters/1985.html

 

Buffett's Letter 1985 to Shareholders

 

It is used when he talks about the shutdown of the textile Business

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