THINK THE FALLOUT, WHAT COULD THE REPERCATIONS....TO THE WORD ECONOMY...
THE FEAR HELPS TO SHORT THE MARKETS ON SHORT TERM...THEN TRAP THE LAZY LEAST INFORMED RETAIL HEARD...ENJOY THE FEAST ON SHORT COVERING.....
European Banks Unprepared for Greek Exit From Euro
By Elena Logutenkova, Liam Vaughan and Gavin Finch - May 23, 2012 3:32 PM GMT+0530
Europe’s banks, sitting on $1.19 trillion of debt to Spain, Portugal, Italy and Ireland, are facing a wave of losses if Greece abandons the euro.
While lenders have increased capital buffers, written down Greek bonds and used central-bank loans to help refinance units in southern Europe, they remain vulnerable to the contagion that might follow a withdrawal, investors say. Even with more than two years of preparation, banks still are at risk of deposit flight and rising defaults in other indebted euro nations
“A Greek exit would be a Pandora’s box,” said Jacques- Pascal Porta, who helps manage $570 million at Ofi Gestion Privee in Paris, including shares in Deutsche Bank AG (DBK) and BNP Paribas SA. (BNP) “It’s a disaster that would leave the door open to other disasters. The euro’s credibility will be weakened, and it would set a precedent: Why couldn’t an exit happen for Spain, for Italy, and even for France?”
The prospect of Greece leaving the 17-nation euro region increased after parties opposed to the terms of the nation’s second bailout by the European Union and the International Monetary Fund won most of the votes in May 6 elections. A fresh round of voting will be held June 17 after politicians failed to form a government. For the first time since the crisis began in November 2009, European leaders and central bankers are speaking openly of Greece abandoning the currency union.
http://www.bloomberg.com/news/2012-05-22/european-banks-unprepared-for-pandora-s-box-of-greek-exit.html
IT IS VERY LIKELY THAT THE WORST MAY NOT HAPPEN ON JUNE 17TH BUT THE FACT IS....LIFE IS ALWAYS CHALLENGING TO STOCK MARKT TRADERS......
THE FEAR HELPS TO SHORT THE MARKETS ON SHORT TERM...THEN TRAP THE LAZY LEAST INFORMED RETAIL HEARD...ENJOY THE FEAST ON SHORT COVERING.....
European Banks Unprepared for Greek Exit From Euro
By Elena Logutenkova, Liam Vaughan and Gavin Finch - May 23, 2012 3:32 PM GMT+0530
Europe’s banks, sitting on $1.19 trillion of debt to Spain, Portugal, Italy and Ireland, are facing a wave of losses if Greece abandons the euro.
While lenders have increased capital buffers, written down Greek bonds and used central-bank loans to help refinance units in southern Europe, they remain vulnerable to the contagion that might follow a withdrawal, investors say. Even with more than two years of preparation, banks still are at risk of deposit flight and rising defaults in other indebted euro nations
“A Greek exit would be a Pandora’s box,” said Jacques- Pascal Porta, who helps manage $570 million at Ofi Gestion Privee in Paris, including shares in Deutsche Bank AG (DBK) and BNP Paribas SA. (BNP) “It’s a disaster that would leave the door open to other disasters. The euro’s credibility will be weakened, and it would set a precedent: Why couldn’t an exit happen for Spain, for Italy, and even for France?”
The prospect of Greece leaving the 17-nation euro region increased after parties opposed to the terms of the nation’s second bailout by the European Union and the International Monetary Fund won most of the votes in May 6 elections. A fresh round of voting will be held June 17 after politicians failed to form a government. For the first time since the crisis began in November 2009, European leaders and central bankers are speaking openly of Greece abandoning the currency union.
http://www.bloomberg.com/news/2012-05-22/european-banks-unprepared-for-pandora-s-box-of-greek-exit.html
IT IS VERY LIKELY THAT THE WORST MAY NOT HAPPEN ON JUNE 17TH BUT THE FACT IS....LIFE IS ALWAYS CHALLENGING TO STOCK MARKT TRADERS......
1 comment:
True Guruji,
News for consolidating all the markets for the rise of last 4 to 5 months.
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