Pendleside Festive Dingbats. Cd 6/1/25
Quizzes & Puzzles0 min ago
euro debt
is it just me or is anyone else sick of hearing about it
the so called clever ones say it is ok to borrow money then lend it out at a higher rate as we will make money
what happens when these countries that we lend money too can't or won't pay
http://news.sky.com/s...And_What_Happens_Now_
the so called clever ones say it is ok to borrow money then lend it out at a higher rate as we will make money
what happens when these countries that we lend money too can't or won't pay
http://news.sky.com/s...And_What_Happens_Now_
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Won't isn't going to happen.
Just as if you defaulted on your debt nobody would lend to you again, the same would happen if Greece defaulted.
They would rapidly run out of money and descend into chaos - in exactly the same way that Argentina did when they defaulted - any politician doing that would be finished.
As for can't that's another matter and it's why all the strings are attached to the money that France and Germany are pumping into Greece.
But you're missing the elephant in the room
Forget the Euro look at the US debt!
There is no way they can keep going without raising taxes - and the Republicans are simply refusing to do so.
And there's an August 2nd deadline
If the US were to default we'd allbe in the pooh big time!
Just as if you defaulted on your debt nobody would lend to you again, the same would happen if Greece defaulted.
They would rapidly run out of money and descend into chaos - in exactly the same way that Argentina did when they defaulted - any politician doing that would be finished.
As for can't that's another matter and it's why all the strings are attached to the money that France and Germany are pumping into Greece.
But you're missing the elephant in the room
Forget the Euro look at the US debt!
There is no way they can keep going without raising taxes - and the Republicans are simply refusing to do so.
And there's an August 2nd deadline
If the US were to default we'd allbe in the pooh big time!
Remember that it is banks that lend the money to the likes of Greece, Ireland, the UK and the US. If Greece or the US default it is these banks who will make claims against their insurers. BTW, it is British and American credit risk insurers which will take the biggest hit, they wouldn't be able to absorb losses from a combined Irish and Spanish default, never mind the USA. It is in the interest of all countries involved, but specially in the British and American interest to keep Greece et al going to avoid these countries crippling the Anglo-Saxon credit insurance industry.
As for the USA, they will have to raise taxes and may not manage to agree on it. One way forward as described in a column in the Economist: http://iitm.be/rfqmff
As for the USA, they will have to raise taxes and may not manage to agree on it. One way forward as described in a column in the Economist: http://iitm.be/rfqmff
Question is if a country were to default would we end up bailing out a bank again that was too exposed to it?
Osbourne has refused to split the merchant banks from the retail ones so that a failing bank could be allowed to go bust instead relying on these "stress tests"
But these stress tests do not account for a country defaulting.
We cannot allow ourselves to be blackmailed by the banks a second time and Cameron and Osbourne have to stand up to their chums in the city and split the banks away from their high risk "casino" operations.
Osbourne has refused to split the merchant banks from the retail ones so that a failing bank could be allowed to go bust instead relying on these "stress tests"
But these stress tests do not account for a country defaulting.
We cannot allow ourselves to be blackmailed by the banks a second time and Cameron and Osbourne have to stand up to their chums in the city and split the banks away from their high risk "casino" operations.
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