How are EURO banks going to bail out Greece?

Discussion in 'Business & Economics' started by charles brough, Oct 24, 2011.

  1. charles brough Registered Senior Member

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    I read that they are instituting "BANK CAPITAL BUFFERS." Anyone know what this is? I gather that it means that the big banks cannot pay dividents but have to accumulate more capital so they can lend more to Greece and the other hapless members of the Euro.

    It is important to figure out if there is any way the Euro nations can inflate themselves out of the mess. If not, it just gets worse. The last plan only took 3 months to fail. How long will the pending one last?

    Would YOU lend money to Greece? If so, what interest rate would you charge to make the risk worthwhile?

    brough
    http://civilization-overview.com
     
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  3. Captain Kremmen All aboard, me Hearties! Valued Senior Member

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    Definition of
    capital buffer


    Finance.

    sufficient capital to counter risk
    the amount of capital a financial institution needs to hold above minimum requirements, calculated on an assessment of forecast risk.


    http://www.qfinance.com/dictionary/capital-buffer

    The question is not what it is, but where is it coming from?
     
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  5. Me-Ki-Gal Banned Banned

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    There are a lot of rumors floating around . The rumor is it is going to be a bigger blood bath than 2008 in the States . That is the spin as of yesterday from Financial business interests . Wall street cronies . I saw were Great Britain wants disclosure and there is some resistance ? I don't know Captain.
    Is there a chance at a total bank collapse because of hidden debt. Are the banks hiding losses like in America . I just talked to a bank Manager today . It is ugly and they are one of the solvent banks that took no Bank money hand outs . The trouble is still brewing in the U.S. People are clinging to any hope they can find .


    i have heard rumors of margin calls . Also Moodys made a statement that the U.S. will be down graded with in 2 years like it was already a conclusion . They may have even stated the politicians can't make enough correction to make a difference . That is pretty strong language . I have not looked at the market today but this morning every thing was pretty flat except gold was on another move upward. Long range for casting don't look good and the fear factor is that this is the new economy and don't expect any jump in growth for who knows . The new business environment for the foreseeable future is the chatter going down
     
    Last edited: Oct 24, 2011
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  7. charles brough Registered Senior Member

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    Yes, if the banks are already losing mone, cutting dividends won't provide the banks with more capital because they wouldn't be paying dividens anyway.
     
  8. charles brough Registered Senior Member

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    I share your concern! I read the China is in the midst of a real estate bubble with prices up 300% in the last five or seven years. All it takes is one shock and China, the US and Europe all together collapse the "Global Economy" even worse than in 2008. People are so concerned about inflation that they have pushed gold prices way up, but the big danger now is deflation from a collapse of credit. Government re-inflation with a bigger stimulus would get us back on our recovery, but the Tea Party makes any such effort impossible. I think inflation will come later in our efforts to fight the resulting depression.

    brough
    http://civilization-overview.com
     
  9. Stevie Registered Member

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    3
    Banks have invested with 'loans' in Greece and as the EU have cut off the debts by half the banks are the ones who are losing money.

    Since basicly their capital is cut by half, concerning the invested money in Greece, to be able to keep above water they will probably have to ask for more money from owners or sell parts.
     
  10. The Esotericist Getting the message to Garcia Valued Senior Member

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  11. nietzschefan Thread Killer Valued Senior Member

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    This is like watching a bunch of ants scurry around a hill that's just been stomped. In this case it's just a pile of shit.

    Point, laugh, and watch my gold ETFs rise.
     
  12. Me-Ki-Gal Banned Banned

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    I heard last night China is bailing out Greece. Is that true ?
    It comes with strings . No more bad mouthing China currency manipulation.

    The stock market rally is because of this ? Looking a little flat so far today .

    So I seen a pompous Stock manager flip the finger at the occupiers and say Take that fuckers , No double dip Resurrection and we making the money . Capitalism works and to bad you don't have any .

    I wanted to slap him yet I just laughed instead
     
  13. Captain Kremmen All aboard, me Hearties! Valued Senior Member

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    The current rally is a bad joke.
    Things are very little better than they were in 2009.
    But that's the Stock Market for you.
    Herd mentality.

    Look at Gold.
    The people who said it was under priced, from the 80s onwards, were right.
    Temporarily wiser people said Gold was finished as a safe haven.
    It took 30 years for the former to be proved right,
    and they lost money while the people who were wrong made fortunes.

    (Lesson there somewhere)
     
    Last edited: Nov 1, 2011
  14. Captain Kremmen All aboard, me Hearties! Valued Senior Member

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    Ah, things are going to pot again.
    Gratifying.

    I sometimes wonder if I could make money indulging in this madness.
    I am deterred by the rule that all money making schemes work until you invest real money in them.
     
  15. Captain Kremmen All aboard, me Hearties! Valued Senior Member

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    Old saying:
    Never kick a gift horse in the mouth.
     

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