Maybe they can start making barge poles and sell them to bond buyers - about the only way they are going to make any foreign income?April 24 (Bloomberg) -- Greece’s request for a $60 billion bailout led by the European Union may fail to ease investor concerns about the nation’s ability to end its fiscal crisis.
A rebound in Greek bonds after the government’s request for a rescue yesterday, fizzled out as investors kept their focus on a budget deficit that will still be around 10 percent of gross domestic product this year even after austerity measures. The yield on the Greek two-year note rose to 10.23 percent, after falling to 9.63 percent.
“We are not buying Greek debt while so many problems remain unsolved,” said Ralf Ahrens, who holds Greek bonds as part of the about $20 billion he manages as head of fixed-income at Frankfurt Trust. “Asking for the package will not calm down the market.”
European policy makers have only spelled out the aid that Greece would receive over the next year, sparking concerns about how the country will finance itself beyond 2011. While Greece has pledged to lower its budget deficit below the EU’s 3 percent limit by 2012, Goldman Sachs Group Inc. says the country’s challenge is so great the nation may cut or delay payments to bond investors.
There goes $60B down the drain. How are they going to pay it back?
Maybe they can start making barge poles and sell them to bond buyers - about the only way they are going to make any foreign income?
Greece is stuffed, who's next?
However on a Saturdy after a few schooners I find it hard to say more less I get into bother again. Does anyone out there have a clue?
I think you mean Saturday and lest. That's what a few schooners will do. I hope you didn't drive home.
Greek bonds 2 year-yield over 20%corn:
http://www.marketwatch.com/story/greek-bonds-in-free-fall-two-year-yield-over-20-2010-04-28
What I find strange is that the Greek public are protesting so hard against changes to cut government spending...
ATHENS (Dow Jones)--Greece's public sector umbrella union, ADEDY, said it would extend a planned 24-hour strike to a second day to protest the government's austerity measures.
In a statement issued late Sunday, ADEDY called on public workers to walk off the job from Tuesday for 48 hours. The union had previously announced a strike, along with its private sector counterpart, GSEE, for Wednesday.
"The executive committee of ADEDY calls on the workers to strongly react against the unprecedentedly harsh and savage measures taken by the government," the union said in a statement.
The statement followed an announcement Sunday that the Greek government has signed off on a EUR110 billion, three year joint European Union-International Monetary Fund aid program.
The program, which will help Greece cover its financing needs for the next two years, requires Greece to implement tough spending cuts and raise taxes, including steep cuts in civil service pay and pensions and higher sales and sin taxes.
On Monday, local government workers also staged a 24-hour strike, both to protest plans to radically pare back the number of local governments, and over the recent austerity measures.
.ATHENS: Three people were killed last night when an Athens bank went up in flames as tens of thousands of Greeks took to the streets to protest against harsh spending cuts aimed at saving the country from bankruptcy
U.S. participation in the €110 billion ($145 billion) loan to Greece is relatively modest. The 15 nation euro-zone governments are ponying up $106 billion, divided according to their stake in the European Central Bank. Germany, for example kicks in $29 billion, with France good for $22 billion.
Of the $39 billion the IMF is participating in, the US is likely to kick in somewhere in the neighborhood of $3 billion dollars. Considering the US role in the global collapse, that is a relative bargain.
Each member has a "quota"—that is, a financial stake in the IMF, expressed as a percentage—and contributes accordingly. The U.S. quota is 17.09%, followed by Japan at 6.12%, Germany at 5.98% and France and Britain at 4.94% each.
Does that mean that the U.S. is responsible for 17% of the IMF's portion of the Greek package? Not exactly.
First, though all countries are theoretically responsible for investing in the IMF's lending pool, not all of them have currencies that potential borrowers can use. (Think of Zimbabwean dollars or Venezuelan pesos.)
The IMF doesn't say that outright. Instead, it uses the concept of "usable resources," meaning it uses money from countries that are considered financially sound. About 21% of the quota contributions to the IMF were "non-usable," according to the IMF, as of January 2010.
Because the U.S., Japan and big European countries are in the "usable" camp, they finance a larger percentage of IMF funding than their quota would suggest.
It isn't possible now to pinpoint those percentages, for several reasons.
So why is Australians have to pay for this ridiculous bailout for someone who is several thousand kilometers away?
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