Greece Hasn't Got The Money To Make June IMF Repayment

26 replies
  • OFF TOPIC
  • |
"The four installments for the IMF in June are 1.6 billion euros ($1.8 billion). This money will not be given and is not there to be given," Interior Minister Nikos Voutsis told Greek Mega TV's weekend show.
"At some point we will not be able to do it and at some point we are going obviously to have to make this choice that no minister of finance should ever have to make," Varoufakis said.
Interestingly, I agree with Minister Varoufakis. He wouldn't have to make those choices if effective financial leadership had been in place.

Greece Hasn't Got The Money To Make June IMF Repayment, Interior Minister Says

My concern is that this situation might lead to a world-wide economic downturn.


Joe Mobley
  • Profile picture of the author BigFrank
    Banned
    Originally Posted by Joe Mobley View Post

    My concern is that this situation might lead to a world-wide economic downturn. Joe Mobley
    That ship has already sailed.

    They'll work something out. They always do. That statement is 'pre-last minute negotiation' posturing.

    Cheers. - Frank
    {{ DiscussionBoard.errors[10077742].message }}
    • Profile picture of the author seasoned
      Originally Posted by BigFrank View Post

      That ship has already sailed.

      They'll work something out. They always do. That statement is 'pre-last minute negotiation' posturing.

      Cheers. - Frank
      ACTUALLY, it HASN'T sailed yet! Almost every time the ship seemed to leave the port, stock markets DID see a big downturn.

      And It has been about 7-8 years or more and they haven't thought anything up. They just kicked the can down the road and THAT is what THIS is.

      Steve
      {{ DiscussionBoard.errors[10077971].message }}
  • Profile picture of the author SnackMemory
    Greece has been hurting for a very long time now. Its crazy how bad they been doing for the past bunch of years.
    {{ DiscussionBoard.errors[10077746].message }}
  • Profile picture of the author butters
    The euro seems to be at a stage where it may come to an end... With Greece defaulting (this will snowball to other countries defaulting) and the UK referendum, it will be an interesting 2 years for the euro. To be honest, not sure how I'll vote come our referendum, I kinda wanna stay it for the economics but some EU policies are flawed!
    {{ DiscussionBoard.errors[10077930].message }}
    • Profile picture of the author Ron C Farrow
      Originally Posted by butters View Post

      The euro seems to be at a stage where it may come to an end... With Greece defaulting (this will snowball to other countries defaulting) and the UK referendum, it will be an interesting 2 years for the euro. To be honest, not sure how I'll vote come our referendum, I kinda wanna stay it for the economics but some EU policies are flawed!
      Greece is properly broke. Its borrowing money to pay the interest on loans and this is not sustainable. The Euro project was flawed from the start and will end badly.

      As for the UK referendum it hinges on Cameron's ability to renegotiate terms. I'm not hopeful as not the appetite for this among EU leaders. If they snub him, and it looks like they will, a "yes" vote to our exit looks the likely outcome.

      Personally I don't think our EU club membership is worth the 15 billion a year it costs us and we are capable of going it alone.
      Signature

      Making it with Online Arbitrage

      {{ DiscussionBoard.errors[10079055].message }}
  • Profile picture of the author whateverpedia
    Poor old IMF.

    This illustrates the old saying that if you owe the bank a hundred dollars, you've got a problem. If you owe them a billion dollars, they've got a problem.
    Signature
    Why do garden gnomes smell so bad?
    So that blind people can hate them as well.
    {{ DiscussionBoard.errors[10078014].message }}
  • Profile picture of the author yukon
    Banned
    The Repo Man is on his way to Greece.
    {{ DiscussionBoard.errors[10078023].message }}
    • Profile picture of the author BigFrank
      Banned
      Originally Posted by yukon View Post

      The Repo Man is on his way to Greece.
      I hope he likes spinach pie, baklava, olives and feta cheese. He won't find much else. :-)

      Cheers. - Frank
      {{ DiscussionBoard.errors[10078574].message }}
      • Profile picture of the author Karen Blundell
        Originally Posted by BigFrank View Post

        I hope he likes spinach pie, baklava, olives and feta cheese. He won't find much else. :-)

        Cheers. - Frank
        you're making my mouth water - I happen to love all those foods

        ps: I think they should dismantle the Euro and go back to every country for itself. Any country able to manage on their own should just go for it, imho.
        Signature
        ---------------
        {{ DiscussionBoard.errors[10080969].message }}
        • Profile picture of the author butters
          Originally Posted by Karen Blundell View Post

          you're making my mouth water - I happen to love all those foods

          ps: I think they should dismantle the Euro and go back to every country for itself. Any country able to manage on their own should just go for it, imho.
          It'll be interesting come 2017 for the UK, I think we should go independant, we will have short term econimical impact but long term we will be fine.
          {{ DiscussionBoard.errors[10081462].message }}
          • Profile picture of the author Karen Blundell
            Originally Posted by butters View Post

            It'll be interesting come 2017 for the UK, I think we should go independant, we will have short term econimical impact but long term we will be fine.
            Lee, from everything I know about the UK, I think you will be more than OK -
            Brits are very resilient, are they not?
            Signature
            ---------------
            {{ DiscussionBoard.errors[10083818].message }}
  • Profile picture of the author TLTheLiberator
    I doubt if the Greece situation has any real bad long term implications for anyone other than Greece and the creditors involved.
    Signature

    "It's easier to fool people than to convince them that they have been fooled. -- Mark Twain

    {{ DiscussionBoard.errors[10078403].message }}
    • Profile picture of the author butters
      Originally Posted by TLTheLiberator View Post

      I doubt if the Greece situation has any real bad long term implications for anyone other than Greece and the creditors involved.
      Wasn't it the top EU countries who are the creditors?
      {{ DiscussionBoard.errors[10078625].message }}
      • Profile picture of the author Kay King
        Wasn't it the top EU countries who are the creditors?
        Exactly right. And whether Greece remains part of the EU or not will depend on whether the EU thinks allowing Greek to exit will open the door for others to do the same.

        That said, I do not think the EU is willing to forgive huge loans made just 2 years ago. In my mind, that would set a truly dangerous precedent that could lead to the fall of the EU in the future.
        Signature
        Saving one dog will not change the world - but the world changes forever for that one dog
        ***
        Please do not 'release balloons' for celebrations. The balloons and trailing ribbons entangle birds and kill wildlife and livestock that think the balloons are food.
        {{ DiscussionBoard.errors[10078768].message }}
        • Profile picture of the author Joe Mobley
          Originally Posted by Kay King View Post

          In my mind, that would set a truly dangerous precedent that could lead to the fall of the EU in the future.
          I think that is really the setup.

          If "they" forgive the Greek loans to avoid potential "issues", a truly dangerous precedent is set which may lead to political upheaval and a financial crisis.

          If "they" don't... forgive the Greek loans, that may lead to political upheaval and a financial crisis.

          At some point the money will stop, the money has to stop and political upheaval may be unavoidable.

          My concern is that this could affect the money in my pocket (and yours) and food on my table (and yours). If that happens the "political upheaval" will be in US streets.


          Joe Mobley
          Signature

          .

          Follow Me on Twitter: @daVinciJoe
          {{ DiscussionBoard.errors[10078817].message }}
          • Profile picture of the author BigFrank
            Banned
            Originally Posted by Joe Mobley View Post

            My concern is that this could affect the money in my pocket (and yours) and food on my table (and yours). If that happens the "political upheaval" will be in US streets. Joe Mobley
            There are many more pressing problems to be concerned about. The scenario that you so bleakly paint is just not realistic. Might it cause some of the Wall St. barons to lose some money? Yes and who cares? Is there going to be rioting in the streets of America as people kill each other over a loaf of bread? I don't think so.

            You're generally such a fairly well-reasoned individual. Did you start drinking at breakfast time to celebrate the holiday???

            Cheers. - Frank
            {{ DiscussionBoard.errors[10078980].message }}
            • Profile picture of the author Joe Mobley
              Originally Posted by BigFrank View Post

              You're generally such a fairly well-reasoned individual. Did you start drinking at breakfast time to celebrate the holiday???

              Cheers. - Frank
              No... Dammit, I knew I forgot something.

              I need a drink.


              Joe Mobley
              Signature

              .

              Follow Me on Twitter: @daVinciJoe
              {{ DiscussionBoard.errors[10078989].message }}
              • Profile picture of the author BigFrank
                Banned
                Originally Posted by Joe Mobley View Post

                I need a drink. Joe Mobley
                I promise that you won't give a hairy-rat's behind about Greece by 3 PM. Enjoy your day. :-)

                Cheers. - Frank
                {{ DiscussionBoard.errors[10078997].message }}
    • Profile picture of the author derekwong28
      Originally Posted by TLTheLiberator View Post

      I doubt if the Greece situation has any real bad long term implications for anyone other than Greece and the creditors involved.
      The issue is that we would be in the big unknown if Greece exits the euro. What may follow is contagion involving other weak European economies such as Ireland, Portugal, Spain, Italy and even France. The crisis could then spread out of Europe involving other continents.

      We saw that happened in 1997 which started with Thailand which was a country with a small economy. It then involved the other Asean countries, then to other Asian countries such as Japan, Korea, and Hong Kong, and finally to Eastern Europe and Latin America. That crisis was way more severe and scarier for Asian countries than the 2008 crisis.
      Signature

      Do not get between a wombat and a chocolate biscuit; you will regret it dearly!

      {{ DiscussionBoard.errors[10078790].message }}
      • Profile picture of the author TLTheLiberator
        Originally Posted by derekwong28 View Post

        The issue is that we would be in the big unknown if Greece exits the euro. What may follow is contagion involving other weak European economies such as Ireland, Portugal, Spain, Italy and even France. The crisis could then spread out of Europe involving other continents.

        We saw that happened in 1997 which started with Thailand which was a country with a small economy.

        It then involved the other Asean countries, then to other Asian countries such as Japan, Korea, and Hong Kong, and finally to Eastern Europe and Latin America. That crisis was way more severe and scarier for Asian countries than the 2008 crisis.

        I guess we're just going to have to wait and see how this plays out and how much trouble the speculators cause if Greece somehow defaults.
        Signature

        "It's easier to fool people than to convince them that they have been fooled. -- Mark Twain

        {{ DiscussionBoard.errors[10078933].message }}
        • Profile picture of the author Joe Mobley
          Blame-shifting this away from those responsible for the problem is contrary to the facts and will not help solve the issue.

          In the US, those "speculators" would include millions of citizens that have government bonds in their retirement accounts.

          Originally Posted by TLTheLiberator View Post

          I guess we're just going to have to wait and see how this plays out and how much trouble the speculators cause if Greece somehow defaults.

          Joe Mobley
          Signature

          .

          Follow Me on Twitter: @daVinciJoe
          {{ DiscussionBoard.errors[10078949].message }}
          • Profile picture of the author TLTheLiberator
            Originally Posted by Joe Mobley View Post

            Blame-shifting this away from those responsible for the problem is contrary to the facts and will not help solve the issue.

            In the US, those "speculators" would include millions of citizens that have government bonds in their retirement accounts.




            Joe Mobley
            We're talking about the Greek situation and how does millions of U.S. bondholders come into the conversation regarding the Greek situation?


            Are you once again mistakenly paralleling the Greek situation with our situation?
            Signature

            "It's easier to fool people than to convince them that they have been fooled. -- Mark Twain

            {{ DiscussionBoard.errors[10079234].message }}
            • Profile picture of the author Kay King
              I'm not convinced leaving the EU would be a bad move for Greece though some experts seem to be wringing their hands.

              Greece has fought the austerity programs imposed at every turn. The bailout truly was a carrot and stick scenario - handing money out yet setting stringent austerity rules the people did not want nor like (who would?).

              I don't remember how much the first Greek bailout was - but the second in 2012 was 170 billion or so...and this year there has been talk of a third bailout. I can't believe citizens of the EU countries would be willing to throw even more billions at Greece this year...no matter what their leaders want to do.

              I don't see how Greece can limp along as it is for much longer - but could be wrong about that.
              Signature
              Saving one dog will not change the world - but the world changes forever for that one dog
              ***
              Please do not 'release balloons' for celebrations. The balloons and trailing ribbons entangle birds and kill wildlife and livestock that think the balloons are food.
              {{ DiscussionBoard.errors[10079277].message }}
  • Profile picture of the author whateverpedia
    The Eurp was always a stupid idea. How coud you possibly create a "level playing field" of economic powerhouses like Germany and minnows like Greece and the former Iron Curtain nations.

    The Brits and Scandinavian countries (minus Finland) had the right idea and kept their own currencies along with the ability to issue said currencies and set their own interest rates.

    I can't even say it was a noble experiment that didn't work. It was doomed to fail from the moment it was proposed.
    Signature
    Why do garden gnomes smell so bad?
    So that blind people can hate them as well.
    {{ DiscussionBoard.errors[10078870].message }}
    • Profile picture of the author seasoned
      Originally Posted by whateverpedia View Post

      The Eurp was always a stupid idea. How coud you possibly create a "level playing field" of eceonomic powerhouses like Germany and minnows like Greece and the former Iron Curtain nations.

      The Brits and Scandinavian countries (minus Finland) had the right idea and kept their own currencies along with the ability to issue said currencies and set their own interest rates.

      I can't even say it was a noble experiment that didn't work. It was doomed to fail from the moment it was proposed.
      Your'e right. Originally, the EU was FAR more selective! It wasn't PC, but it was the ONLY real thing they could do. The problem with any FIAT money is that it gets to be like, and may become, monopoly money. BTW for those that don't know, monopoly money refers to script used in the game of monopoly where you buy tokens of value towards winning the game. Outside of the game, it has NO VALUE AT ALL!!!! With fiat money, it gets hard to follow real value. They SHOULD have had EU money awarded according to a fixed amount of gold, or other stable commodity, given to the EU. The local money should have been audited accordingly, and maybe had some registration scheme.

      Steve
      {{ DiscussionBoard.errors[10079395].message }}
  • Profile picture of the author drewcpappas
    I hope they go back to the drachma. Was just at my mom's house and found a bunch of them
    {{ DiscussionBoard.errors[10079686].message }}

Trending Topics