SO. It turns out that Greece will get another BAILOUT at BONDHOLDERS' EXPENSE

[Zippyjuan]

For the investors it is basically agree to having the face value of their Greek bonds drop by 50%- or risk having them go to zero percent if Greece has to default. Getting back half is better than getting back nothing. It is not a bailout but is a requirement for Greece to possibly receive more bailout money in the future.
http://www.msnbc.msn.com/id/46175493...s_and_economy/

Without the deal, which would reduce Greece's debt load by at least euro120 billion, the bonds held by banks, insurance companies and hedge funds would likely become worthless. Many of these investors also hold debt from other countries that use the euro, which could also lose value in the event of a full-fledged Greek default. This is the scenario analysts fear most and why they hope investors will voluntarily accept a partial loss on their Greek bonds.

The agreement taking shape is a key step before Greece can get a second, euro130 billion bailout from its European Union partners and the International Monetary Fund. Besides restructuring its debt with private investors, Greece must also take other steps before getting aid. It must cut its deficit and boost the competitiveness of its economy through layoffs of government employees and the sale of several state companies, among other moves.

Greece faces a euro14.5 billion bond repayment on March 20, which it cannot afford without additional help.

The country got its first bailout in May 2010 when the EU and the IMF signed off on a euro110 billion aid package, most of which has already been disbursed.

Private investors hold roughly two-thirds of Greece's debt, which has reached an unsustainable level — nearly 160 percent of the country's annual economic output. By restructuring the debt held by private investors, Greece and its EU partners are hoping to bring that ratio closer to 120 percent by the end of this decade. Without a deal, analysts forecast that ratio ballooning to 200 percent by the end of this year as the Greek economy falters.

[wgadget]

BUT:

Greece and investors who own its bonds have reached a tentative deal to significantly reduce the country's debt and pave the way for it to receive a much-needed euro130 billion bailout.

[teacherone]

They're GETTING a bailout at the bond holders' expense.

no they're not.

they're liquidating 60% of their debt.

this is ron paul approved.

[Demigod]

Guess for what 6 billion are to be spent from that bailout ,on fighter jets,frigates and police equipment.What a joke.

The banker that the EU made prime minister is basically just there to liquidate Greek public property so to only pay the interest on the loans the Greek took in the same time increasing the debt even further.

Greece after 4 years has had its GDP fall by 20% and their debt increase,unemployment increase,and average income decrease.

In the end when the banks make around 300% profit just from interest and still not a single cent from the actual debt has been payed off they will probably let them get back the Drachma so they can buy off what the Greeks took loans to build for ridiculously low prices .

[wgadget]

http://hosted.ap.org/dynamic/stories...01-28-12-41-28

IMF Managing Director Christine Lagarde warned that the eurozone crisis is not the region's problem alone.

"It's a crisis that could have collateral effects, spillover effects, around the world," she said. "What I have seen, and what the IMF has seen in numbers and forecasts, is that no country is immune and everybody has an interest in making sure that this crisis is resolved adequately."

The IMF is the world's traditional lender-of-last-resort and Lagarde is trying to increase its resources by $500 billion so it can help if more lending is needed in Europe or elsewhere. European countries have said they're prepared to give the IMF $150 billion, but that means the rest of the world will have to come up with $350 billion.

At a closing panel Sunday, Paul Polman, CEO of Unilever, said a readjustment in Europe is essential "because, if you want to really simplify it, we've lived above our means, and we've done that for too long, and the moment of truth has arrived."



Maybe just say ABRACADABRA?

[Seraphim]

Wgadget...this is called default and debt restructuring..NOT a bailout.

Government bond holders everywhere in the world are going to take a haircut either through outright debt reduction OR the yields they receive will be much lower than the rate of inflation.

No different then any other investment, if you make a bad choice - you suffer the consequences. Greek bond holders made horrible, stupid decisions with their money. Fuck em.

[wgadget]

So this is "liquidating the debt."

[Seraphim]

YES.

As already stated - this is the RP approved type situation.

Bad debts MUST be written off to restore balance...if you hold that debt...your "asset" is written down in value.

So this is "liquidating the debt."

[wgadget]

Okay...Wow.

I'm taken aback. So I suppose there will be many, many people running away from bonds if this goes through? What will the effects be, long- and short-term?

[Demigod]

YES.

As already stated - this is the RP approved type situation.

Bad debts MUST be written off to restore balance...if you hold that debt...your "asset" is written down in value.

No its not liquidating the debt.

Cause the debt which the EU has been buying up from Greece can not be liquidated.They must pay it off.The Greeks are taking loans from the EU to pay the debt that the EU holds just at higher interest rates with every passing month.

This is pillaging a nation without firing a single bullet