Eurozone debt crisis

[Iron]

Irish banks need extra 24bn euros to survive:

http://www.bbc.co.uk/news/uk-northern-ireland-12912358

Jeff

[Euler]

Portugal is asking for a bailout!

http://www.bbc.co.uk/news/business-12993318

[CaerMyrddin]

I do wonder if our prime minister is bipolar.

Monday he was on the national tv saying that we wound't have to be bailed out and that it would be horrific. Now it's for the best

I do think it's for the best, we were overspending.

For those like Jeff that would like the Eurozone to collapse it's like seeing their domino fall. If you think that 1/3 of our debt is owned by Spain, well Euro is in trouble, but who knows if it simply didn't start with unrealistic exchange rates and now is just adjusting the hard way.

[Iron]

Is it just me, or does Euro looks like a house of cards that could collapse at any moment?

Jeff

Portugal is asking for a bailout!

http://www.bbc.co.uk/news/business-12993318

[Iron]

Monday he was on the national tv saying that we wound't have to be bailed out and that it would be horrific. Now it's for the best

He's obviously taken a leaf out of the book of the Irish politicians!

For those like Jeff that would like the Eurozone to collapse it's like seeing their domino fall. If you think that 1/3 of our debt is owned by Spain, well Euro is in trouble,

I think the Eurozone will collapse at some point, but it's not something I welcome.

The effect on the financial markets could make Lehmann Bros look like a walk in the park...

Jeff

[CaerMyrddin]

Cascais major had this video made to encourage Finland to help Portugal:

http://www.youtube.com/watch?v=A2DEjvmxMrw


I'll do my job by encouraging you to visit Portugal in the summer

[Iron]

You eat every part of a pig?

Jeff

Cascais major had this video made to encourage Finland to help Portugal:

http://www.youtube.com/watch?v=A2DEjvmxMrw


I'll do my job by encouraging you to visit Portugal in the summer

[CaerMyrddin]

Personally I don't, but most people do!

If I remember it correctly we are not the only ones doing it, the italians too?

But you can come here, spend your holidays and be rested as you can always order steaks

[Iron]

Interesting developments in Greece: http://www.telegraph.co.uk/finance/econ ... emate.html

You have to wonder whether the Greeks are simply playing hard ball, or if they really might be about to say to the EU: 'No more austerity measures - to hell with the consequences, we've had enough!'...

Jeff

[Euler]

Looks like the discussion is deepening on how to handle a default rather than debating if there will be one.

http://www.telegraph.co.uk/finance/econ ... ubini.html

[Iron]

Let's hope for all our sakes that this guy isn't right: http://blogs.telegraph.co.uk/finance/an ... -defaults/

Jeff

Looks like the discussion is deepening on how to handle a default rather than debating if there will be one.

http://www.telegraph.co.uk/finance/econ ... ubini.html

[mulberryhawk]

Whats more important to the bond markets when assessing a country`s credit worthiness? Is it large defecits or is it the % of debt to gdp that causes the peripheral bond spreads to widen?

[superfrank]

Whats more important to the bond markets when assessing a country`s credit worthiness? Is it large defecits or is it the % of debt to gdp that causes the peripheral bond spreads to widen?

It's everything added up and the price reflects the markets view of the chance of default. I guess it takes into account inflation expectations too; I think most UK govt bonds are index-linked.

[Euler]

I'm pretty sure most bonds are not index linked, that way you can inflate your way out of debt.

Meanwhile: -

IMF may block aid payments to Greece

Luxembourg Prime Minister Jean-Claude Juncker said IMF rules may stop it paying because Greece cannot guarantee its solvency for the next 12 months

http://www.bbc.co.uk/news/business-13571299

[superfrank]

I can't find the proportion of index-linked gilts but here is DMO info http://www.dmo.gov.uk/index.aspx?page=gilts/indexlinked. For non-index-linked bonds the price/yield must reflect inflation and inflation expectations otherwise no one would want to hold them.

The BoE moved its pension funds into index-linked gilts in 2009 - I wonder what they were expecting (despite their forecasts always showing inflation about to fall back to target)... http://www.telegraph.co.uk/finance/pers ... ution.html.