EC PRESIDENT CALLS URGENT MEETING FOR TOMORROW #2

AnnaEsse wrote:

Panda wrote:This thread has been going for some time and there is a lot of interest because it has quite a few hits every day,yet no one posts here. It would be nice to get some response .......as long as you stick to topic.

Thanks for posting these updates, Panda. I am just reading for information here and thank you for it.

Hi AnnaEsse, it"s wierd , there are about 40 hits a day so there is obviously a nucleus to prove this thread is popular, it affects all of us after all. I enjoy posting the info because it"s like being on a roller coaster and the topic interests me very much. anyway, glad you appreciate it

IT SAID IN THE GUARDIAN THAT STRIKING CIVIL SERVANTS BLOCKED ACCESS BY EU CHECKING GROUP TO THE NATIONAL STATISTICS OFFICE.

COULD FRENCH ,GERMAN AND BRITISH BANKS BE AFFECTED BECAUSE OF THEIR EXPOSURE TO GREEK DEBT

Badboy wrote:COULD FRENCH ,GERMAN AND BRITISH BANKS BE AFFECTED BECAUSE OF THEIR EXPOSURE TO GREEK DEBT

Hi Badboy, yes American and French Banks in particular are exposed and that comment from the "proudcitybanker" saying Greece should default repaying
only 50% of it"s debt means the Banks suffer a 50 % loss on their loan. Also, the ECB has bought hundreds of Bonds which would only be 50% repaid.

French Banks are in trouble and the problem is, Countries around the World who could help financially won"t because they know they won"t get their money back. The Euro is losing value which is upsetting those Countries ,particularly China ,which holds a huge amount of Euros as investment.

dIDN'T I HEARD ON TV THAT A LOT OF YOUNG PEOPLE WERE THINKING OF MIGRATING FROM GREECE?

Badboy wrote:dIDN'T I HEARD ON TV THAT A LOT OF YOUNG PEOPLE WERE THINKING OF MIGRATING FROM GREECE?

I know a lot of rich Greek Citizens are coming to London to buy up Properties in posh parts of London that are cheaper with the recession. The problem
with Greece is that it has never been good at Economics, collecting taxes, a retirement age of 50 yrs of age, paying their Bills etc. Instead of doing
something about it years ago they did nothing, now they will never repay their borrowings and have just enough money to last a few weeks.

ONE THING THAT GREECE HAS IS TOURISM.

Badboy wrote:ONE THING THAT GREECE HAS IS TOURISM.

It"s not enough badboy, 4-5 months of the Year? Because the Euro is losing so much, anywhere in the EU Countries it will be very expensive. It"s O.K.
if you are buying Euros for a holiday but the cost of everything abroad has shot up.

gonna make a cuppa now,so I"ll say Goodnight,

Another Meeting in Luxembourg today, but not expected to discuss Greek default. Instead, Bondholders of Greek debt are expected to increase their
writedown. Currently a 2 yr Bond pays 63.32% interest, 5 yrs 27% and 10 yrs 23%.........crippling interest rates for an already broke Country.!!!!!

Italy might need a huge loan form the EFSF but Germany has no plans to increase the EFSF coffers.

Dexia , a Belgian bank in serious trouble will not be broken up says CEO.

Greece apparently has enough money to last until 2nd of November which gives the EU more time to decide whether to give the E8 Billion tranche.

I can see the EU breaking up , the rest of the world will be very wary of holding EUROS as an investment when such weak decision making by EU leaders .

All the major Banks in France have a big exposure to Greece and are vulnerable. Italy has a debt burden of 2 TRILLION Euros.!!! I thought the U.S.A. was
bad enough with a U.S. $ debt of 14.3 trillion .

Franco Belgian Bank , Dexia, is in dire straits but France has promised help to keep it afloat. BNP Paribas is also on shaky ground. DuetscheBank has
revised its profit forecast down . European stocks , predominately Banks are low. At the Meeting in Luxembourg one of the Ministers is suggesting the
Bond holders for Greece should take a bigger hit by writing off a bigger percentage of the debt.

ONE EXPERT RECKONS 4-6 WEEKS TO SORT OUT PROBLEMS OR WAS IT 4-6 WEEKS UNTIL A DEFAULT.

Badboy wrote:ONE EXPERT RECKONS 4-6 WEEKS TO SORT OUT PROBLEMS OR WAS IT 4-6 WEEKS UNTIL A DEFAULT.

tHE WAY THINGS ARE GOING BADBOY, i RECKON A DEFAULT.

IT IS BEING IN THE GUARDIAN THAT FRANCE AND GERMANY ARE ALSO ON THE SICK LIST OF NATIONS WITH PROBLEMS.

Badboy wrote:IT IS BEING IN THE GUARDIAN THAT FRANCE AND GERMANY ARE ALSO ON THE SICK LIST OF NATIONS WITH PROBLEMS.

Make no mistake badboy, France and Germany rule the EU and were instrumental in securing agreement from the rest of the Countries to help out Greece
because if Greece defaulted the Euro could collapse and maybe the EU. That was over a year ago and the rest of the World is annoyed with them for
not sorting out the matter. Now they face their own problems, France with it"s Banks and Germany"s biggest bank has announced it will not meet it"s profit target. All this, yet still they havn"t reached agreement, had they allowed Greece to default and risk the Euro , there wouldn"t be this mess.

IT IS SAID THAT THE MONEY OF SAVERS IN FRENCH AND GERMAN OR BELGIAN BANKS ARE AT RISK IF GREECE DEFAULTS.

Badboy wrote:IT IS SAID THAT THE MONEY OF SAVERS IN FRENCH AND GERMAN OR BELGIAN BANKS ARE AT RISK IF GREECE DEFAULTS.

Just mentioned on the News, Dexia was bailed out 3 yrs ago and will probably be split. There is no way that Government in the EU can bail out Banks this time so we wait and see.

Another intelligent comment on sky news from someone who obviously works in the City,


Posted by: proudcitybanker on October 4, 2011 3:47 PM

Here we go again, another bailout of a bankrupt bank (by the Belgian government who is not exactly awash with spare cash...)....

Do they ever learn, or listen to their electorates....

In a capitalist society both profits AND LOSSES are a private matter.

Let Greece default, let this bank go bust, reinstate moral hazard and
then there might be some prospect of a beginning to the end of this
crisis which has run more or less unabated for 3 years and counting

BRING BACK MAGGIE

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I saw on the news this evening that the sum required just to support Greece through November was £8 billion. This does not include further bail outs !!!

Angelique wrote:I saw on the news this evening that the sum required just to support Greece through November was £8 billion. This does not include further bail outs !!!

Angelique....how can a Country only have enough money to last 4 weeks......it"s incredible.!!! In fact the EU is unravelling and the dithering about what
to do is resulting in the Euro losing value which affects all 17 Countries. Not only Greece, Italy is the next to fall, also, Spain is looking for more money, France and Belgium also in trouble....how it will all end Goodness knows.

All Europe (Eurozone) is on a big fix with the problem of the sovereign debts, but, the problem is not exactly the "Euro currency" but lots of other things that have been going on for a long while.

Ireland needed a bailout because they've been saving banks after the crisis that started in the US, and its propertly bubble.

Portugal needed a bailout because its former PM and the Minister of Finances didn't know how to sum and started to spend money as if there was no tomorrow! Our last 6 years have no paralel in terms of public expenses - of course we now have to pay with salary cuts, tax increase, etc, etc.

Greece is another story! Let's make no mistake here. The Greeks have been lying about their really financial state from a long while ago! When the Euro started the circulation, Greece was given a year to sort their economical problems in order to match the criteria defined in Copenhagen, in order to join the currency. During that year they had to work on, the only thing they did was to forge numbers in order to trick the EU! Besides that, it seems nobody in Greece was used to pay taxes! Actually their tax evasion is something huge because their Gov. has never set a plan to cross information, and they still charge taxes as if they were still living in the Middle Age! Thousands of Greeks have bank accounts in Switerzland when officially in Greece receive the minimum wage. Dead people were still receiving pensions as if they were alive and well! Public workers had the right to 15 months of salary and each one of them who could speak one more language besides Greek, had the right to an amount monthly - as a prize. Corruption was rampant and it was normal to give a doctor an envelope with money, in case they needed any treatment (what the Hell was that?)! Another sad example of the good "life" of Greece was employing ten gardeners for a small garden with just 4 trees! The examples will never end!
So, when the crisis started in the US, Greece - and by domino effect all Europe - got right away sick. It's the prize to pay when their priorities were not paying their debts and developing their bank and tax charges, but instead being more worried with an hypothetical invasion from Turkey and even Macedonia's name, obliging them to adopt the FYRM. Now the domino effect is difficult to stop and we live in this limbo of... what next!

Hi FSoares,

Yes, Greece brought this problem on itself, even now, rich Greeks are buying upmarket Properties in London which have decreased in value.!!

When Britain joined the EU in 1973 it was called the Common Market, since then rules and Laws affecting every Member Country"s right to govern itself
has resulted in a big anti-EU among the British ,but our Government has since signed Treaties which ties us closer to the EU. A free Trade egreement
would have been fine and maybe a joint Defense , but you can see how this problem with Greece has affected 17 Countries,!!!!

A few years ago I read that the Auditors for the EU could not sign off the Accounts for several years because there was not enough information to balance the Books, Also, at, the beginning there was a fiscal rule that no EU Country could have a debt more than 3% higher than it"s GDP. I think it was Italy and France or Spain who broke the rule but were never penalised or all Countries monitored after that which is why the EU is in such a mess now. It has all come to light because of the World Wide economic crisis.

I think it was perhaps too optimistic to expect all these countries with a different language and culture to behave as one and this is the result. This
inability to react to this crisis which one year on is still not resolved, is putting the EU Government in a bad light with the rest of the World, and making
matters worse.

Moody"s has downgraded Italy to A2, Berlesconi facing 4 Lawsuits

Finland opposes expanding EFSF Capital

Moodys says there will be more european downgrading. There are only 6 of the 17 EU States with a AAA rating.

Positive opening for all European stocks on a rumour that the EU has made a decision on Greece.

Portugal has gained relief by Bondholders delaying repayment.

Merkel says those demanding endgame to the European problems havn"t a clue.

Franca and Belgium will be next to face Moody"s downgrade.

sky news


9:07am UK, Wednesday October 05, 2011

There has been a weak rebound in share values this morning amid tentative
signs of action to ease the eurozone debt crisis.




The Northern Rock-style split of Dexia preceded promises
to boost bank capitalisation



After the FTSE 100 fell to a 14-month low on Tuesday, news emerged of efforts
to recapitalise Europe's struggling banks.

European Union (EU) nations are building a "co-ordinated" plan to avoid
contagion, according to the EU's Economic Affairs Commissioner Olli Rehn.

After a meeting of finance ministers in Luxembourg, he told the Financial
Times: "There is an increasingly shared view that we need a concerted,
co-ordinated approach in Europe while many of the elements are done in the
member states.



Ollie Rehn has spoken of a 'sense of urgency'



"There is a sense of urgency among ministers and we need to move on.

"Capital positions of European banks must be reinforced to provide additional
safety margins and thus reduce uncertainty."

His comments followed the dismantling of Franco-Belgian bank Dexia, which
lost over a third of its value in two days of trading amid concerns about its
exposure to Greek debt.

Its debts are being split into a Northern Rock-style 'bad bank' based in
France while its deposits remain protected.



The splitting up of Dexia is similar to the experience of
Northern Rock



The concern for Dexia on Tuesday was the central plank of wider panic
selling, driven by the lack of action to make progress on Greek debt and stop
wider contagion.

The Italian government's credit rating was cut for the second time in as many
weeks overnight.

Ratings agency Moody's took it down by three notches, citing an increase in
long-term funding risks for the euro area.



FTSE 100 One-Year Chart




Despite that, European markets recovered some losses of recent days on
opening this morning.

The FTSE 100, which has suffered five straight days of losses, gained 2.5% on
opening.

There was a similar bounce on the CAC 40 in Paris and on Germany's
DAX.

Greeks are on strike against the Government austerity measures.

Trichet says the EU can take pride in the Euro, he will soon leave the ECB.

Merkel signals Greek investor losses will be helped by increasing Bank Capital

Deutsche Bourse evacuated because of Bomb scare.

Shares in Euro Countries rose today on hope that a decision will be made soon.about Greece.