Will Greece restart the Eurozone debt crisis?

[Rambo35]

It seems like the story never ends; Greece started the Eurozone debt crisis and it seems that whenever news about the ongoing debt contagion are just about forgotten there is a new flare of wildfire and we hear or read about Greece again.

I came across this article posted by one of the Paxforex reporters that Greece is facing yet another shortfall of €4 billion and their existing line of credit (as I refer to it, bailout if you prefer) has only €10 remaining (The Program of Aid to Greece is Scarce Again).

Does this concern anyone or do you think it will be nothing major? Does it affect your view on the Euro?

 

[Pharaoh]

Previously the Euro levitated without support as the dollar plunged. Now, the dollar seems able to walk on air while the Euro suffers.

Overall, I think all we need is some sort of financial shock in the USA for people to realize that neither the Euro nor the dollar is truly a safe haven currency anymore.

My bet is that if things go too far the wrong way with Greece, there will be a demand that Greece get some cash for itself from sources it doesn't have to pay back. A Cyprus-style government sanctioned bank robbery may be in the cards.

 

[Michel123]

What i also can see is China trying to turn yuan into the convertible currency not only in Asia, but all over the world. It might appear that there'll be one more credit from PRC to EU, which can support euro fro some time. Although Greece might be finally forced to act more aggressive in order to save the economy. I currently can't see the ways for Greece to leave eurozone, but it is possible that Germany and GB could try to get reduce the supporting funds.

 

[Pharaoh]

Now if only I can get my bucketshop to carry the CNY before they make more moves to liberalize the trading range and then finally let it float freely.

Of course, China providing financial assistance to the Euro in the same way Chinese purchases of US Treasury bonds props up the dollar leads to an interesting scenario. What happens when China decides to collect on all that debt?

I can see 2 ways for Greece to leave:

1. They finally decide they don't want to put up with the strings attached to all the loans and other fiscal assistance.
2. The members of the Eurozone realize it's time to throw them overboard to help keep the ship from sinking.

 

[dkami]

Will Greece restart the Eurozone debt crisis?

Absolutely just like the FED QE will continue on forever!

And the currency war continues.........

 

[LoRio]

I live in Greece so ... guys , short that ****.
Kidding.
The only thing you should keep an eye on here is possible elections .
Theres only one party able to cope(and understand) financial matters and the economy.
If anything else comes to govern.Short that ****(euro) for real.

 

[Pharaoh]

The only thing you should keep an eye on here is possible elections .
Theres only one party able to cope(and understand) financial matters and the economy.

I was under the distinct impression that it was illegal for politicians and political parties to have any real understanding of financial matters and the economy.

So you live in Greece. I hope you are limiting the amount of cash in your bank accounts. I'd hate to think your bank balance might be subjected to a Cyprus haircut.


Mattress Bank - The only bank safe from government sanctioned bank robbery. Protecting people's assets since 1929.

 

[LoRio]

we also have "next to the planted tomatoes bank"

 

[Pharaoh]

Oh, that's Garden Jar Bank. They used to be one of the biggest competitors to Mattress Bank, back when most people had gardens.

 

[daniwoodword]

I like Greece a lot and I hope they will get out of this crisis as fast as possible. They are such nice people - really pleasure being with greek folks!

It seems unfair to me that people are living their lives and working each day only to wake up few years ago to terrible announcement of the government
telling about the huge debts and the crisis Greece is in.