Greece's woes pose little threat to world economy, even if it leaves eurozone

mentalfloss

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Greece's woes pose little threat to world economy, even if it leaves eurozone

Olivier Blanchard, director of research at the International Monetary Fund, says Greece's troubles pose little threat to the broader global economy.

In a statement Thursday, Blanchard said the world economy has "withstood the stress tests of the last two weeks fairly well."

Blanchard noted that Greece makes up just 2 percent of the 19-nation eurozone's economy and less than 0.5 percent of the world's economy.

"We continue to hope for and work toward a positive solution by which Greece remains in the eurozone," he says. "There is little question that Greece is suffering and may suffer even more under the scenario of a disorderly exit from the Eurozone. But the effects on the rest of the world economy are likely to be limited."

http://finance.yahoo.com/news/latest-imf-greece-poses-little-132455786.html
 

CDNBear

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Geezus, your attention wh@ring is reaching megalithic proportions.

How many threads do we need on one subject?
 

mentalfloss

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It is about the relevance of the problems in Greece to the rest of the world, not simply how Greece is being affected.
 

captain morgan

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It is about the relevance of the problems in Greece to the rest of the world, not simply how Greece is being affected.

Greece's philosophy of entitlement could possibly, potentially, lead to the EU having to bail-out the banks that financed the Greek bond issues.

I don't think that there is a major threat to the global economy, but it will have consequences to those financiers that loaned Greece funds in good faith
 

mentalfloss

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Possibly.

I think the important thing to understand is that we should not use global indicators as an excuse for downward trends in our own economy.
 

CDNBear

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I think the important thing to understand is that we should not use global indicators as an excuse for downward trends in our own economy.
But we should learn from their mistakes.

Which would be why we should never vote Liberal or NDP.
 

mentalfloss

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No that is too partisan.

Federally, we need a balanced economy, not one that relies so much on the oil industry.
 

Tecumsehsbones

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Greece's philosophy of entitlement could possibly, potentially, lead to the EU having to bail-out the banks that financed the Greek bond issues.

I don't think that there is a major threat to the global economy, but it will have consequences to those financiers that loaned Greece funds in good faith
And poor thought. I remember a cartoon with a banker facing a person labelled "Greece" and saying "You've been very irresponsible with all the money we lent you."

I don't know about you, but I expect a little bit more from lenders than "good faith." Like maybe some sort of analysis of the ability of the borrower to pay?

Why didn't they do their due diligence? Because they proceeded on the assumption the EU would bail them out. That's what we call "socialism," except when applied to the government forcing the people to pay for the f*ck-ups of private businesses.
 

captain morgan

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Possibly.

I think the important thing to understand is that we should not use global indicators as an excuse for downward trends in our own economy.

Canada aren't the ones using these indicators, they are being used by the analysts and spin-doctors to assess a possible situation for many nations (incl Canada).


But we should learn from their mistakes.

Which would be why we should never vote Liberal or NDP.

Hear! Hear!

At least as long as the aforementioned parties cling to the notion that buying the vote with borrowed money is acceptable

No that is too partisan.

Federally, we need a balanced economy, not one that relies so much on the oil industry.

What does this mean?... Do you think that you'll add revenues and fill the gvt bank accounts by killing the lucrative industries and hoping that something else will magically fill the void?

Give your head a shake
 

CDNBear

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No that is too partisan.
Says the most partisan member at CC.

Federally, we need a balanced economy, not one that relies so much on the oil industry.
You can't force balance!

You have to play on your strengths.

I certainly wouldn't expect you to weld stainless.

Why didn't they do their due diligence? Because they proceeded on the assumption the EU would bail them out. That's what we call "socialism," except when applied to the government forcing the people to pay for the f*ck-ups of private businesses.
Can you expand on how that plays in out in Greece's case?

Canada aren't the ones using these indicators, they are being used by the analysts and spin-doctors to assess a possible situation for many nations (incl Canada).
The doom and gloom scaring Flosster under his bed.

Who said anything about killing industry?
What would you call restricting resource development and exploitation?
 

captain morgan

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And poor thought. I remember a cartoon with a banker facing a person labelled "Greece" and saying "You've been very irresponsible with all the money we lent you."

I don't know about you, but I expect a little bit more from lenders than "good faith." Like maybe some sort of analysis of the ability of the borrower to pay?

You are bang-on here and the lenders have to ante-up and take their share of the blame.

That said, the Greek gvt did provide falsified books when they entered the EU and in part, the DD by the banks was based on these numbers (before it became public that the #'s were altered).


Why didn't they do their due diligence? Because they proceeded on the assumption the EU would bail them out. That's what we call "socialism," except when applied to the government forcing the people to pay for the f*ck-ups of private businesses.

No one loaned them the cash with the expectation of default... Although you are probably correct in stating that the lenders had the expectation of a bail-out by the EU, they would have also known that any bail-out would see the lenders assuming a capital loss (getting 'x' cents on the dollar).

Curious about this statement though: "the government forcing the people to pay for the f*ck-ups of private businesses"... What/who are the private business' to which you refer?
 

mentalfloss

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No I just don't support propping up a select few industries.

We should be helping provinces that aren't usually known for economic performance to have a greater impact so that if oil falls then they can pick up the slack.

Since industry in these places can't simply take off by itself, it means it takes federal investment.
 

CDNBear

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No I just don't support propping up a select few industries.
Like Ontario manufacturing? The beef industry? The pork industry? The softwood industry? The milk industry? etc etc etc...

We should be helping provinces that aren't usually known for economic performance to have a greater impact so that if oil falls then they can pick up the slack.
When and where do you draw the line?

Since industry in these places can't simply take off by itself, it means it takes federal investment.
So you mean handouts on a "we hope this works" basis. Great thinking.
 

mentalfloss

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It's pretty obvious that renewable energy will be taking off in the next 20-30 years and we cannot escape upcoming regulations on carbon emissions (whether it starts at the provinces or federally).

Every significant industry required the government to make the initial investment to get it going.