Greece Hit By Massive Strike Protesting Austerity Plan

[bemildred]

Source: MNI

ATHENS (MNI) - Greece was hit Tuesday by a massive strike of public and private sector workers, who are protesting the severe austerity measures the Greek government has agreed to implement over the next four years in exchange for E110 billion in assistance from the Eurozone and the IMF.

The strike, which is affecting numerous sectors of the Greek economy and society, is expected to last 48 hours. It is seen as a crucial yardstick of public resistance to the government measures, and thus of the government's ultimate ability, politically, to stick to its promised fiscal course.

The austerity package envisages cutting the public sector deficit by 5.5 percentage points of GDP this year alone and by 11 points over the next four years through a series of layoffs, draconian pay and pension cuts, and increases in consumer taxes.

In the public sector, the strikes are affecting virtually all government offices and ministries, as well as public services, schools and hospitals.

Read more: http://imarketnews.com/?q=node/12846

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1. FOREX-Dollar rallies, euro at 1-year low on debt fears

NEW YORK, May 4 (Reuters) - The euro tumbled to a one-year low against the dollar on Tuesday on fears that aid for Greece may not prevent debt crises in other euro zone countries, prompting investors to seek shelter in the U.S. currency.

The euro fell below $1.31 for the first time since April 2009 while the dollar rose more than 1 percent against the Swiss franc as well as the Australian and Canadian dollars.

Investors snapped up safe-haven U.S. Treasuries and punished riskier U.S. .SPX and European equities .FTEU3.

"There is no faith in what the EU and IMF have proposed for Greece," said Dean Popplewell, chief currency strategist at OANDA, a foreign exchange brokerage in Toronto.

http://www.reuters.com/article/idUSN0411595320100504

[Robbien]

2. CNBC is calling these strikers communists

With Greek communists taking to the streets of Athens and even unfurling banners on the Acropolis as part of strikes that are expected to bring much of the country to a standstill, it remains unclear whether the Greek government can sell huge austerity measures demanded by the IMF to voters.

http://www.cnbc.com/id/36932209


The people have to take cuts in social programs or else the banksters will be very unhappy. Taxes should be used to bail out banks not serve the public interest. CNBC believes one has to be a communist if one believes the people come before the elite.

[DJ13]

3. +1

Lets hope the Greeks put up enough of a fight to force austerity to mean the wealthy also sacrifice.

[LuckyLib]

6. Wealthy Greeks have to start paying taxes. Avoiding tax responsibility is so embedded in life

in Greece that changing that will be very difficult.

[sui generis]

4. we really need to have some standards in journalism

it's a damn good thing I'm not king of the newsroom or we'd have record job openings in the news industry, but only hiring qualified journalists and editors to replace the current lot of amateurs.

[anigbrowl]

7. could be because Greece has an active communist party

http://inter.kke.gr/

[Robbien]

9. Yes it does, but CNBC has no idea if these people are members

They throw out the label in an attempt to sway US public opinion. Just as they use the label socialist for Democrats.

Not all Greek citizens are communists and not all Democrats are socialists. But you would never know that listening to CNBC.

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5. Corporate Bonds Getting Crushed

NEW YORK—High-grade corporate bonds were getting crushed Tuesday, led by big international banks, due to fresh concerns that European debt woes are far from contained.

"People have become increasingly nervous that the current Greek bailout won't cut it and are now looking towards Spain and Portugal as additional concerns," said Richard Lee, managing director of fixed income at Wall Street Access in New York.

The risk premium on Credit Suisse 5.00% notes due 2013 has widened by 0.16 percentage point, to 0.96 percentage point, according to MarketAxess. The risk premium on Barclays Bank 5.125% bonds due 2020 widened 0.07 percentage point to 1.52 percentage points.

Risk premiums are the extra income investors demand for what they see as the added risk of owning corporate debt instead of Treasurys. As the premium widens, the relative value of the bonds falls.

http://online.wsj.com/article/SB10001424052748704866204575224391216647192.html

[Xithras]

8. Coming soon to a street corner near you.

What's happening in Greece should be a wakeup call to everyone else around the world. Deficit spending only works for governments when others are willing to buy your debt.

The day the banksters decide "no more": :nuke:

This is the real reason why our government won't deal with a whole myriad of financial and outsourcing issues. We don't want to piss off the people who pay our bills.

[daggahead]

10. The right wingnuts in the US ...

... are blaming the Greek financial melt-down on the pensions paid to union members.

Right ... it has nothing to do with Wall Street & UK Financial dickweeds hedging bets on their economy.

:spray:

[Supersedeas]

11. Imagine