Infographic of the Day: The Debt Superhighway

[baronWastelan]

Sure is nice of those bond holders to voluntarily accept a loss of more than 70 percent.

Bond Payment
Open questions involve how much more aid Greece needs, how much more austerity is required, and how to involve the European Central Bank in the debt swap. Facing a 14.5 billion-euro ($19.1 billion) bond payment on March 20 and general elections as soon as April, Papademos must heed calls for tighter austerity to complete the talks on a second aid package in time. Venizelos said everything needed to be completed by tomorrow evening.
The discussions have led to tussles among European central bankers and political leaders. The rescue blueprint includes a loss of more than 70 percent for bondholders in a voluntary debt exchange and loans that will probably exceed the 130 billion euros now on the table.
Deutsche Bank AG Chief Executive Officer Josef Ackermann said Greek debt talks are a “make or break” issue and that a collapse of Greece’s economy would open a “Pandora’s box” that would kill a euro-area recovery.
“We are in a make-or-break situation and Greece plays a very important role -- and if we find a solution in the next few days, I think we’re on the right track,” Ackermann told a panel today at the Munich Security Conference. The executive said earlier that he’ll fly to Athens tonight as talks go on over the swap involving Greek debt with a face value of about 200 billion euros.

Article at Bloomberg.com

[Sternjaeger II]

baronwastelan, I'm not quite sure what point you're trying to make

considering the state of the USA economy, I think you don't have much to snigger anyway..

[Wolf_Rider]

If the everyday household was in the position Greece is in at the moment, the credit card/ loan provider would have called in the debt collection motions ages ago.

[baronWastelan]

Now all eyes are on Germany. CESIfo, the Munich-based economic research group that publishes the closely-followed Ifo Business Climate index, has put a pencil to Germany’s maximum exposure over time, given today’s commitments. In addition to the bailout mechanisms, the report takes into account Germany’s exposure through its 27.1% share of the ECB and its 6% voting rights of the IMF. Total exposure: 635 billion ($831 billion), a whopping 27% of Germany’s GDP. And it doesn’t even include any bailouts within Germany. The details:

- €22 billion for the first bailout package for Greece, agreed upon in May 2010. The Eurozone would contribute €80 billion and the IMF €30 billion—to be paid out in tranches. Hiccups developed immediately. Slovakia didn't participate. Ireland and Portugal dropped out as both were put on life support. Germany's share is based on its share of the ECB (27.1%).

- €1.8 billion for Germany's share (6%) of the IMF’s €30 billion contribution to the package.

- €12 billion for the European Financial Stability Mechanism (EFSM) of €60 billion, established in May 2010—based on Germany's 20% share of the EU budget.

- €253 billion for the European Financial Stability Facility (EFSF), established in June 2010 and enlarged in October 2011 to €780 billion. Germany’s share is 27.1% (based on its share of the ECB), or €211 billion. Also included is the 20% increase allowed under German law.

- €15 billion for the IMF’s €250 billion commitment to the EFSF. Germany’s liability is based on its 6% voting rights of the IMF.

- €94 billion for the ECB’s purchases of sovereign bonds. The "Securities Markets Program," launched in May 2010, has grown to €219 billion. Germany’s exposure is composed of two factors: its share of the ECB (27.1%) and its portion of the share of Portugal, Ireland, Italy, Greece, and Spain, which won’t be able to fulfill their commitments to pay the ECB for losses. For a total of 43%.

- €237 billion through “Target2.” Target2 and its predecessor “Target” were a mundane part of the ECB's interbank payment system. The ECB would temporarily borrow money from the central bank of one country and lend it to the central bank of another. In 2008, however, as capital flight from periphery countries began, the credit flow became one-sided and ballooned with each new outbreak of the debt crisis. Thus, these once ordinary credits became the first de facto bailout of crisis-struck countries. By November 2011, total amount in credits extended to the central banks of Greece, Ireland, Portugal, Spain, and Italy was €556 billion, according to Ifo.

Germany's share of Target2 balances is based on its share of the ECB (27.1%). Since Greece, Ireland, Portugal, Spain, and Italy won’t be able to bear their share of any losses, the remaining 12 countries would have to bear them proportionately, giving Germany 43% in total exposure to Target2 balances.

And so Merkel's question—"How long will that remain credible?"—has become a litmus test for Eurozone bailouts.

http://www.testosteronepit.com/home/...s-balloon.html

[baronWastelan]

Summary Of Greek Reform "Pledges"
Submitted by Tyler Durden on 02/08/2012 - 14:49
default Germany Greece Gross Domestic Product
At this point everyone is so habituated to worthless updates from Greece that we are shocked Bloomberg even noticed. Either way, here is latest Greek headline tape bomb, via BBG, which looks at a leaked Troika draft report obtained by Bloomberg.

• TROIKA DRAFT GREEK ACCORD SAYS 2012 GDP TO SHRINK AS MUCH AS 5% - so make that 15%-25% realistically

• GREECE TO CUT MEDICINE SPENDING TO 1.5% OF GDP FROM 1.9% OF GDP - why not just "cull" 15-20% of the population?

• GREECE PLEDGES TO MERGE ALL AUXILIARY PENSION FUNDS - one problem - following the default, there will be no pension funds left.

• GREECE TO PLEDGE 20% CUT IN MINIMUM WAGE IN TROIKA DRAFT - and Greek citizens pledge to never work again.

• TROIKA DRAFT GREEK ACCORD RENEWS PLEDGE TO CUT 150,000 EMPLOYEE - or the US equivalent of nearly 5 million workers...

http://www.zerohedge.com/news/summar...reform-pledges

[baronWastelan]

[moilami]

Originally Posted by baronWastelan

LOL, that is pure genius.

[5./JG27.Farber]

Originally Posted by baronWastelan

Love it. Cant wait for the Merkelreich to spread.

[FFCW_Urizen]

I´m actually more interested in the "German Nudist Sea". Hopefully, Miss Merkel won´t be allowed there .

[RCAF_FB_Orville]

Originally Posted by baronWastelan

Since you are having a good troll at Europe, I think its only fair to return the favour.



I did see a very shocking documentary last week called 'Poor America' on BBC's 'Panorama', which contained interviews with families so poor they had to eat rats to survive. It also showed the vital British charity work being done by 100's of UK doctors, Nurses and dentists helping the US' poor......working for absolutely nothing. Some very tragic scenes.

One blokes teeth were so rancid I thought worms were going to start coming out of his mouth, he was in agony, could not afford a dentist and the story is typical. Organisations like Briton Stan Brocks 'Remote area medical' who work for free to help the impoverished of the US say that some areas are '3rd world' in terms of need.

Very sad...I felt really sorry for them