BBC News: Reports that the EU is placing pressure on the Greek Debt holders to agree to a lower interest rate on their bonds as demanded by the Greek Government. The lack of a deal causing a fall in EU stock markets, if there is not deal and Greece defaults this will cause major losses for French and German Banks. The Greeks will have to go back to their native currency, the EU will still have to bailout out Greece as they will be frozen out of the bond market more that before. Greece is the Achilles heel of the EU and the Euro, if it goes down it could take the Euro, then the bond market will be asking about Ireland, Portugal, even Italy. Thus a deal is needed, not for the benefit of the Greeks but for the EU. A deal is good for the EU but a default would be good for the Greek people. The Classic Greeks must hold their heads in shame when looking at the present Greece.
Tuesday, January 24, 2012
Greece and its DEBT
BBC News: Reports that the EU is placing pressure on the Greek Debt holders to agree to a lower interest rate on their bonds as demanded by the Greek Government. The lack of a deal causing a fall in EU stock markets, if there is not deal and Greece defaults this will cause major losses for French and German Banks. The Greeks will have to go back to their native currency, the EU will still have to bailout out Greece as they will be frozen out of the bond market more that before. Greece is the Achilles heel of the EU and the Euro, if it goes down it could take the Euro, then the bond market will be asking about Ireland, Portugal, even Italy. Thus a deal is needed, not for the benefit of the Greeks but for the EU. A deal is good for the EU but a default would be good for the Greek people. The Classic Greeks must hold their heads in shame when looking at the present Greece.
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