World economy talk

[uls]

yep

this whole crisis is caused by too much debt

private and public

it all started in 2007 when subprime home buyers defaulted on their mortgages

2010 and beyond, governments will be defaulting

[tidus1203]

Too much debt is the symptom of fiat money where money is created and printed as demanded.... Bring back GOLD!

[safeorigin]

the problem is even if they brought back the gold standard, their prices will soar so much that they'll just realize they're screwed anyway

[tidus1203]

Bets by some of the same banks that helped Greece shroud its mounting debts may actually now be pushing the nation closer to the brink of financial ruin.
Echoing the kind of trades that nearly toppled the American International Group, the increasingly popular insurance against the risk of a Greek default is making it harder for Athens to raise the money it needs to pay its bills, according to traders and money managers.

http://www.cnbc.com/id/35580694

Welcome to the high stakes poker game of Wall Street. One day they help you, the next day they will push you down! Whatever makes money!

[uls]

^^^

Goldman Sachs created financial instruments to help the Greece government hide debt (currency swaps, interest rate swaps)

that encouraged the Greece govt to borrow more money which got them deeper into debt

Goldman, as cunning as they are, seeing Greece's deteriorating financial condition, very likely made bets with other financial institutions that Greece would default

--

did i mention Moody's in an earlier post?

here they are

Moody's: Greece must act on fiscal plans
http://www.reuters.com/article/idUSTRE61O21B20100225

TOKYO (Reuters) - Moody's Investors Service said on Thursday any changes in its ratings on Greece would depend on whether Athens was smoothly enacting its fiscal reform plans as promised.

[uls]

next week, Greece will issue 10 yr bonds

we'll see if investors still have confidence in Greece

http://online.wsj.com/article/SB1000...toWhatsNewsTop

The new bond deal is widely seen as a test of the Greek government's ability to raise money in the capital markets to finance its operations and retire old debt. A successful bond sale will demonstrate that the market believes either that Greece can fix its fiscal problems or that Europe will come up with an effective bailout to solve short-term worries. An unsuccessful auction would exacerbate the sovereign-debt fears gripping financial markets and could force other European nations to move more quickly to support Greece.

Greece has to borrow money to pay debt that's maturing in March and April

Greece needs to borrow around €54 billion this year. It has so far raised €13 billion. Since about €22 billion of bonds mature in March and April, that amount must be raised from the market before then.

[tidus1203]

Greece is like someone who borrows from a credit card and uses personal loans to pay for his credit cards... A never ending cycle of debt! Too bad the Euro is a shared currency and thus Greece can't just easily print it as the US does abusing the printing presses with the dollar.

[safeorigin]

Greece is like someone who borrows from a credit card and uses personal loans to pay for his credit cards... A never ending cycle of debt! Too bad the Euro is a shared currency and thus Greece can't just easily print it as the US does abusing the printing presses with the dollar.

and I bet the turks are all grinning

[safeorigin]

Greece is like someone who borrows from a credit card and uses personal loans to pay for his credit cards... A never ending cycle of debt! Too bad the Euro is a shared currency and thus Greece can't just easily print it as the US does abusing the printing presses with the dollar.

and I bet the turks are all grinning

[safeorigin]

Greece is like someone who borrows from a credit card and uses personal loans to pay for his credit cards... A never ending cycle of debt! Too bad the Euro is a shared currency and thus Greece can't just easily print it as the US does abusing the printing presses with the dollar.

and I bet the turks are all grinning

[safeorigin]

According to Charlie Munger, long-time business partner of American investor Warren Buffett, the US economic empire is crumbling before our eyes, thanks to federal debt and poor planning.
Paul Craig Roberts, former assistant treasury secretary for President Reagan, told RT that Buffet’s partner focuses on long-term problems like national debt.
“US$60 trillion of unfunded liabilities is a problem, because Wall Street and the corporations have moved so many high productivity jobs offshore and with them the American technology,” reminded Roberts, “so that the economy lost the ability to create the kind of growth that would produce tax revenues that would make those “$60 trillion liabilities refundable.”
Read more
Paul Craig Roberts pointed out that, once the US moved a considerable part of its own gross domestic product overseas, it greatly affected the income of ordinary Americans and, therefore, their ability to buy products. This is the main reason why the stimulus program is still-born and the economy cannot restart.
“They do not address to what the problems are with the traditional remedies because so much of the American economy is offshore,” he concluded.
It is obvious that the short-term problem of the budget deficit will be resolved with commonplace money printing, went on the economist.
“When the rest of the world, the US creditors, perceives that, then the dollar status as reserve currency is in doubt and if the dollar goes, so does the American power.”

http://rt.com/Politics/2010-02-26/us...shore-gdp.html


nothing new

[safeorigin]

on a different note. . .

"Quite frankly, I fear the pace at which we have grown may have been too quick," Toyoda said in the statement. "We pursued growth over the speed at which we were able to develop our people and our organization," he said. "I regret that this has resulted in the safety issues described in the recalls we face today, and I am deeply sorry for any accidents that Toyota drivers have experienced."

read full entry here

[safeorigin]

and now back to greece
http://www.youtube.com/watch?v=ZEIYGMW-Sow

[uls]

the living dead company known as AIG

earnings report

AIG posts $8.9 billion loss
http://www.reuters.com/article/idUSTRE61P2Q120100226

NEW YORK (Reuters) - American International Group Inc (AIG.N) reported a quarterly loss of $8.9 billion on Friday, hurt by charges related to U.S. loan payback, asset divestments and higher loss reserves.

AIG, in a regulatory filing, warned that it may need additional U.S. government support, as it did last fall. But it also said it will have adequate liquidity to "finance and operate AIG's businesses and continue as a going concern for at least the next twelve months."

[uls]

US CFTC Data: New Record Euro Short; Spec Accts Trim Yen Long
http://imarketnews.com/node/9356

NEW YORK (MNI) - Speculative accounts added to what was already a record net euro short position and continued to trim their net yen long position as per February 23, according to data released late Friday by the U.S. Commodity Futures Trading Commission.

market is net short EUR

long JPY positions have been reduced

still long USD



the short EUR trade has become too popular

any good news that comes out of the eurozone next week could trigger a massive short squeeze

[tidus1203]

A bailout of Greece should do the trick!

[tidus1203]

Funny video about the American consumers!

[ame="http://www.youtube.com/watch?v=XZieEy5-kaA&feature=sub"]YouTube- To Spend or Not to Spend: The Consumer's Dillema[/ame]

[safeorigin]

A bailout of Greece should do the trick!

OMG

kinda ironic how curing the disease will actually make it worse

^
too bad they don't have option C(for chinese). save money

[uls]

A bailout of Greece should do the trick!

yep

if the EU comes up with a more concrete plan for Greece

and Greece govt announces big spending cuts

that would be Euro positive

Greece will issue bonds next week (or next next week)

depends on its success (or failure)

the yield will very likely be high

if the yield is lower than expected, it would be Euro positive

[uls]

Funny video about the American consumers!

YouTube- To Spend or Not to Spend: The Consumer's Dillema

haha

pay bills or buy something?

you know you live in CONSUMER NATION when you ask yourself that question