Ad Majorem.....Wealth Builders
The Greek default involving some 200 billion Euros pale in comparison to China's stock market crash which wiped out some $3.3 trillion of wealth. Some $2.6 trillion assets are frozen. The crash represents 40% of the total market China's stock market cap. The sudden increase in share prices last year may not have been based on stock fundamentals, but based on psychological perception
From Slashdot - Chinas Stock Market Hammered
From Fortune - Chinas stock market loss is equivalent to to 9 Greece economies
Showing posts with label Greece. Show all posts
Showing posts with label Greece. Show all posts
Monday, July 13, 2015
Monday, July 6, 2015
Greece rejects IMF ECB terms of 2nd bail out? What will happen next
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
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
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
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
Subscribe to:
Posts (Atom)
