Guardian UK: Greece set to default on massive debt burden, European leaders concede

[marmar]

European leaders bowed to the inevitable and conceded that Greece is likely to default on its massive debt burden, which would be a first among the 17 countries using the euro.

They also abruptly shifted tack in the eurozone debt crisis by raising the possibility of using the eurozone's bailout fund to buy back Greek debt on the markets, meaning sizeable losses for Greece's private investors and reduced debt levels for Athens.

Following 12 hours of fraught negotiations in Brussels haunted by the risks of contagion in the eurozone spreading to Italy, now being targeted by the financial markets for the first time in the 18-month crisis, the 17 governments of the eurozone pointedly failed to rule out a sovereign debt default by Greece.

A statement that at the meeting the European Central Bank "confirmed its position that a credit event or selective default should be avoided". There was no declaration of governments' support for the ECB position. Both Jean-Claude Juncker of Luxembourg, president of the Eurogroup, and Olli Rehn, EU commissioner for monetary affairs, declined to offer one. .............(more)

The complete piece is at: http://www.guardian.co.uk/business/2011/jul/12/greece-set-to-default-massive-debt-burden

[dkf]

1. Following Greece is making me dizzy.

[girl gone mad]

8. It's simple, really:

Debts that can't be paid back won't be paid back. That's all you need to know.

I called the default last year.

[dkf]

14. So this is all a kabuki dance?

What is the purpose of all of this then?

[white_wolf]

2. Well looks like the PM may have been wrong.

The financial system is NOT stronger than the will of the people.

[socialist_n_TN]

6. No wolf he was right. They've known all along that

Greece would eventually default. It wasn't about that. It was about getting as much money as possible UNTIL the default in interest payments (you can BET the bailouts came with a HIGH interest rate) and THEN the privatization of assets. That was the big prize the privatization.

[Starry Messenger]

7. Damn straight.

:thumbsup:

[joshcryer]

3. The US Dollar is going to be worth more than the Euro again, I think.

Wow.

[Poll_Blind]

5. I know, I've been thinking this too although- it's like the rest of the world has to collapse to...

...make the dollar look good...but it is.

I could write more on this but it'd really be just a promulgation of all the unusual financial occurrences around the world which have enabled us, or at least seemingly enabled us, to fall up on this one.

If we can just keep from defaulting on our own debt, I think America could be in a very strong position. Germany is very strong too but they're wrapped into the Euro so that dilutes their influence on the overall strength of the currency.

PB

[Hydra]

4. This may be good

When Iceland refused to play, the banksters got burned and things improved.

Green shoots here too?

[girl gone mad]

9. I won't say good, but better than the alternaive..

that's for certain.

[Hydra]

10. I don't think that defaulting is bad, in this case

Greece had system that worked, and Goldman Sachs decided to goldmine it. The sad part is that they probably already dumped their interests, so this won't hurt them.

[girl gone mad]

12. It's the best of a lot of bad choices, and it should have happened..

a long time ago. If they had defaulted 1 year ago, the losses would have been in the range of $50 Billion. Now it is estimated to be over $250 Billion. In the meantime, they were forced to adopt economically devastating austerity programs and privatizations.

Let them return to a sovereign currency and strengthen their economy from within. They will do well long term, in my view.

[Hydra]

13. Word

I hope it happens. I think they have the fire to do it.

[riderinthestorm]

11. Yup, once Moody's decided to go "rogue" and wouldn't play along on the ratings for this deal

the handwriting was on the wall.

Honestly, I'm shocked Moody's wasn't pressured into putting a AAA rating on the Eurozone deal. How the hell did that happen? Once "the" world's rating agency gave this deal the thumbs down, it was only a matter of time before Greece defaulted. If even the world's best financiers won't agree that the deal is kosher, you know it smells to high heaven.

Greece's assets may be saved at the last minute. I for one would be grateful. I would have hated to see ANY of it's islands, or treasures like the Acropolis or Parthenon sold off to the highest bidder to satisfy a gluttonous EU private bankster scheme gone bad.

[inna]

15. sounds good. what's the catch? there has got to be one, there is no way banksters are

taking losses without a fight/all-out war.