What Happens if Greece Defaults?

[jimbo320 10]

The printing presses are gonna have to get busy soon.

 

http://demonocracy.info/infographics/usa/derivatives/bank_exposure.html

 

They better start investing in presses, they will need a good few when the contaign starts.

[secondmouse 10]

Greece is an easy target right now, and I understand the impetus to treat it as a punching bag. But the indignation and self-righteousness seems a little disingenuous. I mean, the US is the biggest debtor nation at this point, and it's not as if Americans don't look for ways to get out of paying their taxes, while also approving the funding of expensive wars, expecting the infrastructure to be in tip-top shape, demanding the continuation of the social services they've grown accustomed to, etc.

[Mysticforex 13]

With practice, the Greek's are becoming more efficient, with their elections anyway. The May 6th elections cost €50m and the new one is scheduled to cost only €35. The savings comes as the interior minister will now accept voting results by fax, rather than the more expensive telegrams. This may be the only good news coming from Greece.

[SunTrader 10]

Greece is an easy target right now,

Thread title is what happens if Greece defaults? :doh: I didn't come up with it.

 

Start another if you are not happy.

[Mysticforex 13]

So, what are the world’s biggest debtor nations? See below to find out.

 

20. United States - 101.1%

 

External debt (as % of GDP): 101.1%

Gross external debt: $14.825 trillion

2009 GDP (est): $14.66 trillion

External debt per capita: $48,258

 

19. Hungary - 120.1%

 

External debt (as % of GDP): 120.1%

 

Gross external debt: $225.24 billion

 

2009 GDP (est): $187.6 billion

 

External debt per capita: $22,739

 

18. Australia – 138.9%

 

External debt (as % of GDP): 138.9%

 

Gross external debt: $1.23 trillion

2010 GDP (est): $882.4 billion

 

External debt per capita: $57,641

 

17. Italy – 146.6%

 

External debt (as % of GDP): 146.6%

 

Gross external debt: $2.602 trillion

2010 GDP (est): $1.77 trillion

 

External debt per capita: $44,760

 

16. Spain – 179.4%

 

External debt (as % of GDP): 179.4%

 

Gross external debt: $2.46 trillion

2010 GDP (est): $1.37 trillion

 

External debt per capita: $60,614

 

15. Greece – 182.2%

 

External debt (as % of GDP): 182.2%

 

Gross external debt: $579.7 billion

2010 GDP (est): $318.1 billion

 

External debt per capita: $53,984

 

14. Germany – 185.1%

 

External debt (as % of GDP): 185.1%

 

Gross external debt: $5.44 trillion

2010 GDP (est): $2.94 trillion

 

External debt per capita: $51,572

 

13. Portugal - 223.6%

 

External debt (as % of GDP): 223.6%

 

Gross external debt: $552.23 billion

2010 GDP (est): $247 billion

 

External debt per capita: $51,572

 

12. France – 250%

 

External debt (as % of GDP): 250%

 

Gross external debt: $5.37 trillion

2010 GDP (est): $2.15 trillion

 

External debt per capita: $83,781

 

11. Hong Kong – 250.4%

 

External debt (as % of GDP): 250.4%

 

Gross external debt: $815.65 billion

2010 GDP (est): $325.8 billion

 

External debt per capita: $115,612

 

10. Norway – 251%

 

External debt (as % of GDP): 251%

 

Gross external debt: $640.7 billion

2010 GDP (est): $255.3 billion

 

External debt per capita: $137,476

 

9. Austria – 261.1%

 

External debt (as % of GDP): 261.1%

 

Gross external debt: $867.14 billion

2010 GDP (est): $332 billion

 

External debt per capita: $105,616

 

8. Finland – 271.5%

 

External debt (as % of GDP): 271.5%

 

Gross external debt: $505.06 billion

2010 GDP (est): $186 billion

 

External debt per capita: $96,197

 

7. Sweden – 282.2%

 

External debt (as % of GDP): 282.2%

 

Gross external debt: $1.001 trillion

2010 GDP (est): $354.7 billion

 

External debt per capita: $110,479

 

6. Denmark – 310.4%

 

External debt (as % of GDP): 310.4%

 

Gross external debt: $626.1 billion

2010 GDP (est): $201.7 billion

External debt per capita: $113,826

 

5. Belgium – 335.9%

 

External debt (as % of GDP): 335.9%

 

Gross external debt: $1.324 trillion

2010 GDP (est): $394.3 billion

External debt per capita: $127,197

 

4. Netherlands – 376.3%

 

External debt (as % of GDP): 376.3%

Gross external debt: $2.55 trillion

2010 GDP (est): $676.9 billion

External debt per capita: $152,380

 

3. Switzerland – 401.9%

 

External debt (as % of GDP): 401.9%

 

Gross external debt: $1.304 trillion

 

2010 GDP (est): $324.5 billion

External debt per capita: $171,528

 

2. United Kingdom – 413.3%

 

External debt (as % of GDP): 413.3%

 

Gross external debt: $8.981 trillion

2010 GDP (est): $2.173 trillion

External debt per capita: $146,953

 

1. Ireland – 1,382%

 

External debt (as % of GDP): 1,382%

Gross external debt: $2.38 trillion

2010 GDP (est): $172.3 billion

External debt per capita: $566,756

 

The World’s Biggest Debtor Nations was provided by CNBC.com

[Obsidian 10]

So, what are the world’s biggest debtor nations? See below to find out....

 

Thanks for the info

Glad to see that Greece is in a good shape compared to others :rofl:

[Mysticforex 13]

Thanks for the info

Glad to see that Greece is in a good shape compared to others :rofl:

 

Yeah... like my lettuce joke in "Joke of The Day" thread... just the tip of the iceberg. :rofl:

[jimbo320 10]

Well, if it all goes pear shaped, they can sit on the beach, sunning themselves, drinking Uzo

And eating olives.

 

Oh, isn't that what they do now? No change for them then.. Lol.

[SunTrader 10]

Read an oped today, forgot to copy link, that made the point Germany should leave the Euro - not Greece.

 

They are the one's with the strong economy and benefiting from the weaker common currency with most of the other economies in deep trouble. If they left the currency would weaken further allowing those countries to have a competitive advantage to possible grow their exports.

[Obsidian 10]

If Germany leaves, would euro still exist?

Guess they don't want to abandon their dream.

 

And for the elections on Sunday: I don't think it will be a big surprise...whoever wins, they will not exit the eurozone...politicians lie without hesitation to get elected...

[Mysticforex 13]

The second Greek election, coming Sunday the 17th of June, has been portrayed as a referendum on the Greek membership in the euro. The election results will remain unknown until after the polls close on Sunday, and even polls of the anticipated results are now illegal. The parties who were signatories to the bail out memorandum, the New Democracy, and the Pasok Parties have been under attack from the Syriza Party. Alexis Tsipras, leader of the Syriza's, though he slams the bail out, now vows to stay in the euro.

[MightyMouse 12]

In or out of the EZ, Greece is a problem. In the EZ, Greece is a non productive EZ member that is going to have to be carried. Sort of like our Mississippi. Out of the EZ, They are unproductive and will have to print their way out of trouble. Borrowing costs will be high.

 

Banks either way are going to have to be supported since a default or restructuring is going to erase capital.

 

Govt borrowing, in the long run, devalues a currency. In the short run, a govt promising to borrow its way out of a problem is cause for a party.

[SunTrader 10]

On Seeking Alpha yesterday:

 

"10:00 AM The next time some pezzonovante talks about cutting off aid to Greece, find him and give him a smack. Of the €410B in "aid" to Greece over the past 2 years, JPMorgan estimates only about €15B has gone into the economy, the rest doing a 180 and going to creditors. German and French banks were the main beneficiaries of the first bailouts, now it's the ECB and the IMF."

[jimbo320 10]

They can't exit. All those credit derivatives will need to be exercised. Maybe they will do a partial exit

[Obsidian 10]

for those who would like to follow:

Greek elections: Greece returns to the polls - live coverage | World news | guardian.co.uk

[Tams 20]

[Obsidian 10]

With 99.83% of votes counted, here are the results so far:

 

New Democracy: 29.66% (129 seats)

Syriza: 26.89% (71)

Pasok: 12.28% (33)

Anel: 7.51% (20)

Communists: 4.5% (12)

Golden Dawn: 6.92% (18)

Others: 12.24%

 

Total seats: 300 (the biggest party gets 50 seats bonus)

That means New Democracy and Pasok can form a coalition

 

what if they can not? :rofl:

[jimbo320 10]

Looks like we drag until the next election now..