Ad Majorem.....Wealth Builders
July 5, 2015
Greeks (61%) vote no to 2nd bail out terms
While the Greeks can only withdraw $60.00 per day from ATM, and banks remained closed the entire week, they voted 61% no to ECB and IMF terms of 2nd bail out. Many can not comprehend what PM Alexis Tsipras and his left wing party are up to.
We do understand that the Greeks no longer want the prolonged hardships they are experiencing. Since the Greek govt failed to pay the $1.5 billion interest payment due at the end of June, effectively their credit is gone. No liquidity to be infused to the banking system. We should be wary when IMF says that failure to come to their terms would mean more hardships.
But what are the results/possibilities?
1. Results, - decline in the Euro stock prices and Eruo vs dollar and yen. Euro is only $1.10 vs the dollar; it can go lower.
While the Greece economy is only 2% of the total European economy the 200 billion possible default, can send ripple effect worldwide. All ready the equity markets are on the decline and there are indications of sell off.
Possibilities:
1. Debt relief for Greece
2. 3rd debt relief
3. Grexit?
4. Collapse of the Euro and possibly the world financial system
Showing posts with label IMF. Show all posts
Showing posts with label IMF. Show all posts
Monday, July 6, 2015
Monday, June 29, 2015
Greek contagion pulls down Asian Market
Ad Majorem.....Wealth Builders
The Greek problem, ie inability to strike a deal with European Union bank is going to destroy wealth in Greece, Europe and rest of the world. The Greek leaders walked out from their talks, and instead will refer the proposal on the E 1.7 billion interest payment that will fall due tomorrow.
The banks will not open today, placing Greeks in a difficult situation. This will cost Germany some Euros 65 billion and the biggest loser will be Italy
All ready the Asian markets are being pulled down by this bad news.
Who is at fault here? Greece or the lenders.?
Greece it must be noted borrowed heavily when it joined the European union mostly to finance its social services....
Willl Greece be forced out of European Union? The Greece finance minister does not think so.
The Greek problem, ie inability to strike a deal with European Union bank is going to destroy wealth in Greece, Europe and rest of the world. The Greek leaders walked out from their talks, and instead will refer the proposal on the E 1.7 billion interest payment that will fall due tomorrow.
The banks will not open today, placing Greeks in a difficult situation. This will cost Germany some Euros 65 billion and the biggest loser will be Italy
All ready the Asian markets are being pulled down by this bad news.
Who is at fault here? Greece or the lenders.?
Greece it must be noted borrowed heavily when it joined the European union mostly to finance its social services....
Willl Greece be forced out of European Union? The Greece finance minister does not think so.
Saturday, May 18, 2013
Central Banks face steep losses in their rescue operations - IMF and BIS
Ad Majorem.....Wealth Builders
Repost from Money News | May 16 2013
Central Banks all over the world did the right thing when they saved the world economy from failure but face potentially heavy losses. BSP of PHL has all ready made such a report. But such losses pose no direct danger to the economy. Jaime Caruana, head of BIS (Bank of International Settlements - the central bank of central banks) warned CBs of winding down their support operations of economies
Repost from Money News | May 16 2013
Central Banks all over the world did the right thing when they saved the world economy from failure but face potentially heavy losses. BSP of PHL has all ready made such a report. But such losses pose no direct danger to the economy. Jaime Caruana, head of BIS (Bank of International Settlements - the central bank of central banks) warned CBs of winding down their support operations of economies
Get your money out of Spain/Spanish banks - Spain is insolvent
Ad Majorem.....Wealth Builders
Repost from Newsmax | May 17, 2013
Get your money out of Spain/Spanish banks - IMF has declared Spain to be insolvent. Spain has also figured to have the highest unemployment rate of 27% (or 6 million Spaniards out of job) or nearly equal to that of Greece.
Spain's debt will grow from 84. 1% of GDP last year to 110.6% of GDP in 2018. That means a huge amount of debt servicing requirement. Prudent borrowing limits would just place it at mere 30%. USA in comparison would be almost the same. Japan has also borrowed to the hilt at more than l00% of GDP but these are all yen denominated.
Spain and Portugal hopes for a European Union bank that will help them recapitalize their failing banks
Repost from Newsmax | May 17, 2013
Get your money out of Spain/Spanish banks - IMF has declared Spain to be insolvent. Spain has also figured to have the highest unemployment rate of 27% (or 6 million Spaniards out of job) or nearly equal to that of Greece.
Spain's debt will grow from 84. 1% of GDP last year to 110.6% of GDP in 2018. That means a huge amount of debt servicing requirement. Prudent borrowing limits would just place it at mere 30%. USA in comparison would be almost the same. Japan has also borrowed to the hilt at more than l00% of GDP but these are all yen denominated.
Spain and Portugal hopes for a European Union bank that will help them recapitalize their failing banks
Tuesday, April 23, 2013
Christine Lagarde, IMF boss interview at Hardtalk, BBC News
Ad Majorem.....Wealth Builders
From BBC News | Interview by Stephen Zackur | April 22, 2013
Christine Lagarde, the IMF boss said that the Cypriot bail out was the most difficult job that IMF did; she was not very proud of how they did the bail out, but is proud of the team that worked hard on the bail out.
That crisis is telling everybody that EU must move away from just currency, to that of Euro bank, and EU politics. As of now, you have 17 nations with separate national anthem, treasury dept and you can just expect what we see to happen - a non union.
Perhaps, so as not to disturb the market, Lagarde was very cautious in her statement saying that the world economy is moving forward especially the emerging economies (PHL included) US and others who have difficulties. But Japan.....
She said that austerity, structural reforms must come together in rescuing a troubled economy
From BBC News | Interview by Stephen Zackur | April 22, 2013
Christine Lagarde, the IMF boss said that the Cypriot bail out was the most difficult job that IMF did; she was not very proud of how they did the bail out, but is proud of the team that worked hard on the bail out.
That crisis is telling everybody that EU must move away from just currency, to that of Euro bank, and EU politics. As of now, you have 17 nations with separate national anthem, treasury dept and you can just expect what we see to happen - a non union.
Perhaps, so as not to disturb the market, Lagarde was very cautious in her statement saying that the world economy is moving forward especially the emerging economies (PHL included) US and others who have difficulties. But Japan.....
She said that austerity, structural reforms must come together in rescuing a troubled economy
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