Wednesday, July 1, 2015

Why The Greek Problem Won't Be Solved.....THE WHEELS ARE IN MOTION NOW!

Why The Greek Problem Won't Be Solved

Saxo Bank's Chief Economist, Steen Jakobsen, says that even if a deal between Greece and its creditors is struck, the problem isn't solved. Debt refinancing will be the first issue, with the country needing a significant discount. But how can the country secure that, asks Jakobsen, when the government is unwilling to bring in significant reforms?

Steen also expects an election to be called within weeks followed by a referendum on continuing membership of the Euro. But the arguments have become too emotional, he says, and not about the economic reality.

THE REAL PROBLEM IS THE OTHER EURO COUNTRIES WITH HUGE DEBT PROBLEMS ARE WATCHING AND IF GREECE GETS AWAY WITH DEFAULTING ON THEIR DEBT, THEN YOU CAN BE CERTAIN THAT SPAIN, ITALY AND PORTUGAL WILL ATTEMPT YO DO THE SAME THING.

CAN YOU SAY CONTAGION....

SMART FOLKS AT THE BANKS KNOW THIS IS SO AND TRUST IN EURO LAND WILL EVAPORATE AS THIS PLAYS OUT. IF YOU LEND MONEY OR TAKE THE OTHER SIDE OF A BIG TRADE YOU WANT TO BE CERTAIN YOU WILL GET PAID. THAT CERTAINTY, JUST GOT A LOT HARDER TO GAUGE. WHICH MEANS IT IS GOING TO BE HARDER FOR THESE ENTITIES TO MAKE MONEY. NOT TO MENTION LOTS OF CREDIT DOWNGRADES AND FAILURES COMING AS THIS PLAYS OUT!

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