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  #31  
Old 01-27-2012, 03:45 PM
Snagus Snagus is offline
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I'm sure Fitch's Italian offices have already removed their computers and done a thorough "file retention review" prior to this announcement.
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  #32  
Old 01-27-2012, 04:28 PM
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I'm sure Fitch's Italian offices have already removed their computers and done a thorough "file retention review" prior to this announcement.
Heck, this work could've been done in New York.
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  #33  
Old 01-31-2012, 10:24 AM
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http://www.reuters.com/article/2012/...8CV23S20120131

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Euro zone unemployment has risen to its highest level since the euro single currency was introduced, data showed on Tuesday, a day after EU leaders promised to focus on creating millions of new jobs to try to kickstart Europe's stagnating economy.

Seasonally adjusted unemployment among the 17 countries sharing the euro rose to 10.4 percent in December, on a par with an upwardly revised November figure, the European Union's statistics office Eurostat said.

It was the highest rate since June 1998, before the introduction of the euro in 1999, Eurostat said.

The figures showed another 20,000 people were out of work in December from the month before, taking the number of jobless to 16.5 million people across the euro zone. The rate steadily crept up through 2011 as growth stalled and recession loomed.
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  #34  
Old 01-31-2012, 10:25 AM
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http://www.breitbart.com/article.php...show_article=1

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BRUSSELS (AP) - Investors participating in a deal to slash Greece's massive debt would face an overall loss on their bond holdings of more than 70 percent, a person involved in with the negotiations said early Tuesday.
European leaders at a summit in Brussels said a final debt deal could be signed off in the coming days, together with a second multibillion-euro bailout package designed to save the country from a potentially disastrous bankruptcy.

Athens and representatives of investors holding Greek government bonds over the weekend came close to a final agreement designed to bring Greece's debt down to a more manageable level. Without a restructuring, those debts would swell to around double the country's economic output by the end of the year.

If the agreement works as planned, it will help Greece remain solvent and help Europe avoid a blow to its already weakened financial system, even though banks and other bond investors will have to accept big losses.

The person involved in the talks said Monday that the more-than 70 percent loss was the result of cutting the bonds' face value in half, reducing the average interest rate to between 3.5 per cent and 4 percent and pushing repayment of the bonds 30 years into the future. A second person briefed on the talks confirmed that the loss on the so-called net present value of the bonds would be around 70 percent.
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  #35  
Old 01-31-2012, 11:10 AM
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Just make it 100% and move on. Markets like stability. Sucks to be a bondholder, but Greece was insolvent long ago.
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  #36  
Old 02-15-2012, 09:27 PM
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Moody's warns may downgrade 17 global banks

By Ian Chua and Soyoung Kim

(Reuters) - Moody's warned on Thursday it may cut the credit ratings of 17 global and 114 European financial institutions in another sign that the impact of the euro zone government debt crisis is spreading throughout the global financial system.

The U.S. rating agency said its action on financial institutions from 16 European nations reflected the impact of the debt crisis and deteriorating creditworthiness of its governments.

It cited more fragile funding conditions, increased regulatory burdens and a tougher economic environment for its review of banks and securities firms with global reach.

Moody's salvo follows rounds of downgrades in European sovereign ratings as the euro zone's struggle to keep its weakest link Greece afloat has been driving up borrowing costs and straining finances of other nations.

Last Monday, Moody's cut the ratings of six European nations including Italy, Spain and Portugal and warned it could strip France, Britain and Austria of their top-level AAA grade.

Last month, Standard & Poor's cut France's and Austria's top ratings and downgraded seven other euro zone nations. It also cut the euro zone's bailout fund by one notch.

Moody's said it was reviewing the long-term ratings and standalone credit assessments of Bank of America, Citigroup, Goldman Sachs, JPMorgan Chase, Morgan Stanley and Royal Bank of Canada.

The long-term ratings and standalone credit review of European banks includes Barclays, BNP Paribas, Credit Agricole, Deutsche Bank, HSBC, Royal Bank of Scotland and Societe Generale.

Moody's said it was also extending the reviews of the long-term ratings and standalone credit assessments of Credit Suisse, Macquarie, Nomura and UBS
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  #37  
Old 02-21-2012, 08:16 AM
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Greece is (not really, not even a little bit at all) saved!

http://www.reuters.com/article/2012/...8120HI20120221

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(Reuters) - Euro zone finance ministers sealed a 130-billion-euro ($172 billion) bailout for Greece on Tuesday to avert a chaotic default next month after forcing Athens to commit to unpopular cuts and private bondholders to accept deeper losses.

The agreement was hailed as a step forward for Greece, but doubts immediately emerged as to whether it would do much more than deal with its most pressing debt problems.

Greece will need more help if it is to bring its debts down to the level envisaged in the bailout and will remain "accident prone" in coming years, according to a deeply pessimistic report by international experts obtained by Reuters.

After 13 hours of talks, ministers finalized measures to cut Greece's debt to 120.5 percent of gross domestic product by 2020, a fraction above the target, to secure its second rescue in less than two years and meet a bond repayment in March.

By agreeing that the European Central Bank would distribute its profits from bond buying and private bondholders would take more losses, the ministers reduced Greece's debt to a point that should secure funding from the International Monetary Fund and help shore up the 17-country currency bloc.

While the deal will buy time for the Euro zone until it puts new crisis measures in place over the coming months, it means Greece will struggle for years without economic growth.

The austerity measures wrought from Greece are widely disliked among the population and will put pressure on its politicians who must contest an election in April.

Further street unrest could test politicians' commitment to cuts in wages, pensions and jobs. Greece's two biggest labor unions called a protest in Athens on Wednesday.

An opinion poll taken just before the Brussels deal showed that support for the two Greek parties backing the rescue package had fallen to an all-time low while leftist, anti-bailout parties showed gains.

Anastasis Chrisopoulos, a 31-year-old Athens taxi driver, saw no reason to cheer the deal.

"So what?" he asked. "Things will only get worse. We have reached a point where we're trying to figure out how to survive just the next day, let alone the next 10 days, the next month, the next year."

Greek conservative leader Antonis Samaras, a strong contender to become next prime minister, said the rescue package's debt-reduction targets can only be met through economic growth.

"Without the rebound and growth of the economy ... not even the immediate fiscal targets can be met, nor can the debt become sustainable in the long-term," he said during a visit to Cyprus.

Parliaments in three countries that have been most critical of Greece's second bailout - Germany, the Netherlands and Finland - must now approve the package. German Finance Minister Wolfgang Schaeuble, who caused an outcry by suggesting that Greece was a "bottomless pit," said he was confident it would be passed.

"We have reached a far-reaching agreement on Greece's new program and private sector involvement that would lead to a significant debt reduction for Greece ... to secure Greece's future in the euro area," Jean-Claude Juncker, who chairs the Eurogroup of finance ministers, told a news conference.

Shares slipped from seven-month highs in Europe. while Italian and Spanish government bond yields fell.
The plan has a "really optimistic" scenario that assumes:
-- Greece can get its debt/GDP ratio down to 121-129% by 2020,
-- -1% GDP growth in 2013 [note: Greece had -7% last quarter] and then +2.3% GDP from 2014 forward, and
-- 95% participation rate by creditors [with the ECB getting paid in full and everyone else taking steep haircuts]

Everything from there, ... no so rosy. You have to believe [hope] Portugal and Ireland are looking very closely at both the negotiations underlying this and the fact that Greek society has started to break down in some areas in response to the severe austerity implemented, and that they're also paying very close attention to how Iceland gave the rest of Europe the middle finger and is now doing much better - including getting an investment-grade rating on its sovereign debt back.

Last edited by Irish Blues; 02-21-2012 at 09:59 AM..
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  #38  
Old 02-21-2012, 09:36 AM
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... Ireland gave the rest of Europe the middle finger and is now doing much better - including getting an investment-grade rating on its sovereign debt back.
Do you mean Iceland? I don't think Irish citizens think they're doing much better.
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  #39  
Old 02-21-2012, 09:58 AM
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Do you mean Iceland? I don't think Irish citizens think they're doing much better.
Yes, I meant Iceland. Edit on the way ...
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  #40  
Old 02-21-2012, 11:25 AM
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can someone spell out for me how these debt deals have avoided the "chaotic default". I get that they avoid the default (officially), but there seems to be a fair amount of chaos/riots/etc. going on.
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