Fasten your seat belts! The world financial ride is entering a Corsica Rallye road type! (and those are mean roads, believe me, I know! … more donkey trails than roads!) ;+) The Mini Cooper S was made for them and the likes!……;+)
“After months of failed efforts to help the Greek government make good on those debts, Europe’s politicians have now finally accepted that avoiding default simply isn’t feasible, according to Paul De Grauwe, professor of international economics at Leuven University.”
“Three months later, it appears the July plan doesn’t go far enough. Now, bankers who face much bigger losses are pushing back on proposals that they cut the value of their Greek debt holdings by as much as 50 percent. Many banks are believed to have too little capital in reserve to covers those losses, prompting calls by regulators to force bankers to raise more capital.
Without stronger capital cushions to withstand Greek debt losses, European governments fear they’ll have to step in to clean up the financial mess.”
” A credit crunch couldn’t come at a worse time for the European economy, which is now teetering on the brink of another recession. That, in turn, is raising debt pressures on other countries with weak economies, including Ireland, Portugal and Spain. Unless those economies recover sharply, their governments will likely have to follow Greece down the path of debt restructuring, former IMF chief economist Kenneth Rogoff told a group of business reporters Friday.
While a Greek debt restructuring may now be unavoidable, it will represent the beginning of a long, difficult period of recovery as investors stop lending to the Greek government. Jittery lenders and investors may also have second thoughts about lending to countries now seen as being at risk of a future default, according to Roger Nightingale, economist at RDN Associates.”
““It’s going to be pretty frightful,” he said. “There’ll be no private sector lending to Greece, and they’ll be no private sector lending to any at-risk country for years to come. I think this is no solution at all. This makes things very much worse.””
Are we going to turn Greeks into Somalia pirates? Along the past centuries, the region used to know quite a bit of ships hijacking………interesting, isn’t it , as history is stuttering…..;+)
Timo Mäkinen drives the Mini Cooper S to first of three wins in the 1000 Lakes Rally. Mini also won the Monte Carlo Rally in 1964, 1965 and 1967.