Home › Forums › Financial Markets/Economics › Who’s next to unpeg?
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FlyerInHi.
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January 19, 2015 at 10:27 AM #21381January 19, 2015 at 10:29 AM #782163
CoronitaParticipantWow… this is pretty messed up..
“The Danish bank today cut its deposit rate to minus 0.2 percent, matching a record low, from minus 0.05 percent and lowered its lending rate to a record 0.05 percent from 0.2 percent. While the bank can adjust rates at any time, it traditionally announces changes on Thursdays and mostly in connection with ECB moves.”
January 19, 2015 at 11:50 AM #782166FlyerInHi
GuestHad the ECB not intervened previously, it would be even more “messed up” with deflation in Europe.
ECB was slow to act and is probably regretting now.
January 19, 2015 at 1:41 PM #782170The-Shoveler
ParticipantTo me the real issue when it comes to Europe is “WHEN” will Greece exit the euro zone, and then who is next after that.
Seems like Greece has had enough with austerity, The IMF does not see it that way LOL.
http://finance.yahoo.com/news/imf-chief-warns-greece-debt-debt-131306966.html
Somethings got to give.
June 28, 2015 at 3:06 PM #787625paramount
ParticipantLooks like Greece is going down…this could be bad.
June 28, 2015 at 7:00 PM #787627spdrun
ParticipantOr positive for the rest of the Euro — Greece has been a thorn in their behinds for the past, what, five years? If Greece leaves, then maybe the cycle of paranoia can be broken.
And Greece isn’t that big. A humorous take on the matter…
http://www.bloombergview.com/articles/2015-05-11/apple-could-make-money-by-bailing-out-greece
June 28, 2015 at 10:20 PM #787631Guest[quote=paramount]Looks like Greece is going down…this could be bad.[/quote]
If I were Greek-American, I’d be thinking about getting some money together to buy at the bottom.
Greece is a beautiful country. It will come back, after a couple lost decades. And maybe another 100 years before it can achieve wealth parity with Germany or Holland.
June 28, 2015 at 10:50 PM #787633ParticipantIf you’re talking about property, one problem is that land ownership records there basically stink, so it’s not clear who owns what:
Equities, etc, you don’t have to be any particular nationality.
June 29, 2015 at 12:23 AM #787634GuestYes, I’m talking about property.
That’s why you have to be almost a local and know how to navigate the system.People who bought land when the former communist countries opened up are rich now.
With the raprochment with Cuba, Obama has created many millionaires to be.June 29, 2015 at 5:27 AM #787635flyer
ParticipantWith economic unrest so prevalent around the world, the following excerpts from an article a friend sent me presents an interesting perspective on CA. . .
“California is the home to more super rich than anywhere else in the country – and it also exhibits the highest poverty rate in the nation, when cost of living is taken into account. Income disparities in the state of California are among the highest in the nation, outpacing such places as Georgia and Mississippi in terms of the Gini coefficient, a standard measure of inequality.
Some degree of income inequality is to be expected – people have different talents, skills and predilections, and markets will reward these in different ways. But there are serious consequences when things tip too far in one direction, as seems to be the case for California.
For most of the 20th Century, California had its share of rich and poor, but they were the outliers on either side of a broad middle class. The California Dream was the American Dream with a destination. While people no longer came to California to strike gold and stumble into riches, they did come to build a stable life for themselves and their families: a promising education, a good job, a home, a car. From around the country and around the world, migrants came seeking employment in our factories, and homes in our cities and suburbs. Stable, middle class jobs – and generally rising incomes – were the norm.
Beginning in the 1980s, the rich began to pull away from the rest. Between 1979 and 2012, California’s Top One Percent nearly doubled their incomes, increasing by 189.5 percent, while incomes for the other 99 percent actually fell by 6.3 percent.
The widening gap has many causes. As California, through Silicon Valley, led the world into the digital age, productivity rose to unprecedented levels. But virtually all of the economic benefits went to those at the top, partly because of the spectacular wealth created by the tech sector. In just the last 10 years, California tech companies added at least 23 billionaires to the list of richest Americans – Twitter alone boasted of creating 1,600 millionaires overnight when it went public 15 months ago. The state now has 111 billionaires; if we were a separate country, that would put us behind only the U.S. and China, and tie us with Russia.
Despite America’s reputation as a land of opportunity, intergenerational earnings elasticity (a measure of how likely you are to be stuck in the income group in which you were raised) is higher in the U.S. than in Canada, France, Germany and the Scandinavian countries, and just a bit better than in the United Kingdom or Italy.
And place matters in an even larger sense, with broad swaths of coastal California – including the Bay Area, part of Los Angeles and the Central Coast, and Orange County and San Diego – generally doing much better than those in inland California. This spatial separation by income also occurs in our daily lives: In 1970, for example, 65 percent of Americans lived in middle class neighborhoods, while only 15 percent lived in very rich or very poor neighborhoods. By 2009, only 42 percent lived in middle-class neighborhoods and 33 percent lived in neighborhoods at one of the extremes. California may indeed continue to be a land of opportunity–for the select few.”
June 29, 2015 at 6:37 AM #787636ParticipantThere is a lot of opportunity in California, They cannot find enough trades people or even people who will commit to an apprenticeship right now.
Everyone wants to sit in an air conditioned office in front of a computer screen.
June 29, 2015 at 7:11 AM #787637livinincali
Participant[quote=spdrun]Or positive for the rest of the Euro — Greece has been a thorn in their behinds for the past, what, five years? If Greece leaves, then maybe the cycle of paranoia can be broken.
And Greece isn’t that big. A humorous take on the matter…
I doubt it. The rest of the PIIGS still have the same problem of too much debt and not enough economic growth. The EU is going to do everything it can to make the Greece situation as painful as possible if the referendum fails so that nobody else (Spain, Portugal, etc) gets any ideas that an exit could be a good thing in the long run.
Lehman was small in the grand scheme of things as well and that didn’t prevent a massive leverage unwind in asset prices. Actually Greece is orders of magnitude bigger than Lehman although they have had some time to shift the losses onto the German and the rest of the big EU country taxpayers at this point (aka ECB is the big loser).
The reality is really simple, that which cannot be paid back will not be paid back. It’s not about politics, morals or anything else it’s about math.
June 29, 2015 at 9:49 AM #787639Guest[quote=livinincali]
The reality is really simple, that which cannot be paid back will not be paid back. It’s not about politics, morals or anything else it’s about math.[/quote]
I read that Puerto Rico will not pay back its debts either.
Neither Greece nor Puerto Rico can pay all back. Creditors just need to suck it up for lending in the first place.
Savvy creditors should do their homework before lending. Losing money is something creditors should learn sometimes. That’s how the markets work.
June 29, 2015 at 6:31 PM #787656joec
ParticipantYeah, I’m surprised more people/countries don’t default. Maybe this is the financial engineering where everyone simply kicks the can down the road…to protect all the bond holders and banks who invested.
But if anyone of us had a medical bill or some insane debt that was say 50 million and we had to have austerity forever, I’d leave the country as well and just say I can’t pay and won’t anymore.
Isn’t that what bankruptcy is for?
Seems a lot easier than trying to put so many restrictions that you’re sorta a druggie for some dope dealer who wants to suck all the money they can out of you while they can.
Yes, no one will lend to you again, and your country may collapse financially afterwards, but from everything I’ve seen (and I watch/read this daily), the stuff put in place hasn’t helped much neither and everything is stagnating anyways.
Also, in Greece, the people simply don’t want to pay so since in a way, they sorta need some tough medicine of lack of all public services to give a wake up call that, Yes, maybe I do want to pay for fire and police, etc…services…or start their own perhaps…
All these bailouts just seem to help the financiers become whole.
June 29, 2015 at 9:37 PM #787661GuestYou’re right joec. I wouldn’t pay either.
Failure to pay is not a crime, just a breach of contract between 2 parties.It’s about protecting for establishment.
Countries have go to war before to protect the investments of corporations.Almost all the bailout to Greece so far has been going to repay creditors.
Question is whether access to credit markets is worth taxing and impoverishing the residents.
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