Greece Says That It Will Default On June 5th (GGT)

[GennGreymane]

original title: Greece Says That It Will Default On June 5th, And Moody’s Warns Of A ‘Deposit Freeze’

http://emergingequity.org/2015/05/21...eposit-freeze/

Of course it won’t technically be a “default” according to IMF rules for another 30 days after that, but without a doubt news that Greece cannot pay will send shockwaves throughout the financial world. At that point, those holding Greek bonds will start to panic as they realize that they might not get paid as well. All over Europe, there are major banks that are holding large amounts of Greek debt and derivatives that are related to the performance of Greek debt. If something is not done to avert disaster at the last moment, a default by Greece could be the spark that sets off a major European financial crisis this summer.

As I discussed the other day, neither the EU nor the IMF have given any money to Greece since August 2014. So now the Greek government is just about out of money, and without any new loans they will not be able to pay back the old loans that are coming due. In fact, things are so bad at this point that the Greek government is openly warningthat it will default on June 5th…

[Kalis]

It's Greece, so 5th June is a bit optimistic for them getting around to doing (or not doing) something and it's a bit close to Pneumatos. I'm thinking maybe July, possibly September, not August though, they've got Assumption of Mary then and obviously it can't clash with Okhi Day, so October's definitely out.

Siga, siga.

[Kellhound]

Can the EU repo Greece and auction it off piece by piece?

[Darsithis]

I have coworkers that live in Greece and telecommute. I wonder how this will affect them.

[hellhamster]

Can the EU repo Greece and auction it off piece by piece?

How about we repo your ugly country?

Fucking internet warriors, I swear...

[Rukh]

Wait, who bought Greek bonds? What sort of masochists are these people???

[Deleted]

Can the EU repo Greece and auction it off piece by piece?

I believe some ports were already sold to the Chinese (or they've taken a stake in them).

[Deleted]

Wait, who bought Greek bonds? What sort of masochists are these people???

If Greece defaults I might actually buy some. Without the dead weight of the euro it should recover very quickly.

They'll be able to undercut the rest of europe with the drachma. They have a beautiful country that tourists will flood into when they can stay for a week and pay a fraction of what they would in their own countries.

[mercutiouk]

If Greece defaults I might actually buy some. Without the dead weight of the euro it should recover very quickly.

They'll be able to undercut the rest of europe with the drachma. They have a beautiful country that tourists will flood into when they can stay for a week and pay a fraction of what they would in their own countries.

So much this.

Italy and Spain will see that telling Germany to get fucked and leaving is a viable option. Germany and eastern europe left to play nice with Russia. Germany goes back to shooting bullets rather than spending money to achieve imperium over Europe. It's beautiful, man.

[Deleted]

If Greece defaults I might actually buy some. Without the dead weight of the euro it should recover very quickly.

They'll be able to undercut the rest of europe with the drachma. They have a beautiful country that tourists will flood into when they can stay for a week and pay a fraction of what they would in their own countries.

They could switch to the USD like Zimbabwe did for all the good it would do. It changes nothing and the root of the Greek Financial problems will still exist because Greece refuses to tackle them.

[Kellhound]

How about we repo your ugly country?

Fucking internet warriors, I swear...

Because we pay our debts still.

[Kujako]

Opa!

No? Inappropriate?

[Tradewind]

Greek holiday incoming!

[hellhamster]

Because we pay our debts still.

So do we dummy.

Infracted

[Kellhound]

So do we dummy.

Not if you default, by definition.

[Aggrophobic]

Cheap vacation this year. Awesome!

[hellhamster]

Not if you default, by definition.

So we have defaulted already? That's news to me, I guess I didn't get the memo.

[Afrospinach]

Can the EU repo Greece and auction it off piece by piece?

In all seriousness, the sovereignty of a country is simply not on the table. They default, what they will get is very expensive loans in the future but everyone that lent them money is basically out of pocket.

[Deleted]

So what the eurozone seems to think will happen is : Syriza will split. Varoufakis will not sign a surrender and will resign. Tsipras will ally with Potami, and get the tactic support of the liberal wing of New Democracy. Get debt relief, survive and mutate to a center left social democractic party.

However you have Zoe Konstantopoulou and the 'debt truth committee' along with a revolt in Syriza on the cards to throw spanners at any agreement.

5th of June is going to be the next interesting twist.

[theostrichsays]

So I read about this on these forums, and other websites but don't say much as I don't have the greatest understanding of the entire situation + nothing really important to add.
But I do have an honest question.
How far will the EU let Greece sink if they don't pay their debts? I understand future loans will sucks, and people won't want to do business with them, but my understanding is this whole situation is something that can go down a steep hill for a long time. But exactly how far will the EU let it go, if things don't turn around for Greece?