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


mentalfloss
#1
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...132455786.html
 
CDNBear
#2
Geezus, your attention wh@ring is reaching megalithic proportions.

How many threads do we need on one subject?
 
mentalfloss
#3
It is about the relevance of the problems in Greece to the rest of the world, not simply how Greece is being affected.
 
CDNBear
+1 / -1
#4
Sure sure, wh@re.
 
captain morgan
No Party Affiliation
#5
Quote: Originally Posted by mentalfloss View Post

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
#6
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
+2
#7
Quote: Originally Posted by mentalfloss View Post

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
#8
No that is too partisan.

Federally, we need a balanced economy, not one that relies so much on the oil industry.
 
Tecumsehsbones
+1
#9
Quote: Originally Posted by captain morgan View Post

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
No Party Affiliation
+1
#10
Quote: Originally Posted by mentalfloss View Post

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).


Quote: Originally Posted by CDNBear View Post

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

Quote: Originally Posted by mentalfloss View Post

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
 
mentalfloss
#11
Who said anything about killing industry?
 
captain morgan
No Party Affiliation
+1
#12
You, by virtue of all the penalties you hope for and anti growth statements you make.
 
CDNBear
+1
#13
Quote: Originally Posted by mentalfloss View Post

No that is too partisan.

Says the most partisan member at CC.

Quote:

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.

Quote: Originally Posted by Tecumsehsbones View Post

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?

Quote: Originally Posted by captain morgan View Post

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.

Quote: Originally Posted by mentalfloss View Post

Who said anything about killing industry?

What would you call restricting resource development and exploitation?
 
mentalfloss
#14
I never said anything about restricting resource development either.
 
CDNBear
#15
Quote: Originally Posted by mentalfloss View Post

I never said anything about restricting resource development either.

You supported Mucliar's policies.
 
captain morgan
No Party Affiliation
+1
#16
Quote: Originally Posted by Tecumsehsbones View Post

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).


Quote: Originally Posted by Tecumsehsbones View Post

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
#17
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
+1
#18
Quote: Originally Posted by mentalfloss View Post

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...

Quote:

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?

Quote: Originally Posted by mentalfloss View Post

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.
 
captain morgan
No Party Affiliation
+1
#19
^
^
^
Really well put
 
mentalfloss
#20
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.
 
Tecumsehsbones
+1
#21
Quote: Originally Posted by captain morgan View Post

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).

Nothing like playing with house money.

Quote:

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?

As happened with the U.S. and many other countries after the crash. I understand that the majority of the money involved here came from non-private sources, but the same principle applies. Being backstopped by Uncle encourages fast and loose play, whether you're a gambler, a private bank, or a national (or international) central bank.

Specifically, it changes the numbers in a purely mathematical analysis, to say nothing of "perception of risk" issues.
 
CDNBear
#22
Quote: Originally Posted by mentalfloss View Post

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).

And what does that have to do with what you just got fed?
 
SLM
No Party Affiliation
+4
#23  Top Rated Post
Quote: Originally Posted by mentalfloss View Post

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.

Wow.

If an industry can't take off by itself, that means it isn't viable. Period. You don't just want to put all our money on a long shot, you seem to want to put it all on a 'no shot'.

If it takes the feds to shove money into something simply in order to get it moving, then it's not a business, not an industry, it's a hobby.
 
CDNBear
+4
#24
Quote: Originally Posted by SLM View Post

Wow.

If an industry can't take off by itself, that means it isn't viable. Period. You don't just want to put all our money on a long shot, you seem to want to put it all on a 'no shot'.

If it takes the feds to shove money into something simply in order to get it moving, then it's not a business, not an industry, it's a hobby.

That in a nut shell is the mentality of the morons on the left.

Throw good money after bad, and hope it works this time.
 
captain morgan
No Party Affiliation
+1
#25
Quote: Originally Posted by Tecumsehsbones View Post

Nothing like playing with house money.

But it wasn't the House's money. The EU didn't actually put up the cash, that was provided by the French and German depositors.

On that note, the Greek croupier knew that the dice were loaded.

Quote: Originally Posted by Tecumsehsbones View Post

As happened with the U.S. and many other countries after the crash. I understand that the majority of the money involved here came from non-private sources, but the same principle applies. Being backstopped by Uncle encourages fast and loose play, whether you're a gambler, a private bank, or a national (or international) central bank.

The lender of last resort were gvts, but the cash came from private banks that had certain guarantees in place.

Also, there were private lenders that had no Central Bank guarantees... These folks stand to lose it all


Quote: Originally Posted by Tecumsehsbones View Post

Specifically, it changes the numbers in a purely mathematical analysis, to say nothing of "perception of risk" issues.

Political risk is a biggie, but generally speaking, that risk is highly mitigated in this case as Greece is a Western nation and were (supposedly) vetted by the EU
 
mentalfloss
#26
Exactly.

It's a long term view and it will come on the backs of the oil industry primarily. I mean, yes we have a significant service industry, but McJobs cannot support our economy.
 
CDNBear
+1
#27
Quote: Originally Posted by mentalfloss View Post

Exactly.

It's a long term view and it will come on the backs of the oil industry primarily. I mean, yes we have a significant service industry, but McJobs cannot support our economy.

I'm guessing this in reply to SLM's post.

And is one of the stupidest posts you've ever posited, apart from the last thought.
 
mentalfloss
#28
It's true that the service sector is one of the most important parts of our economy right now.
 
CDNBear
#29
Quote: Originally Posted by mentalfloss View Post

It's true that the service sector is one of the most important parts of our economy right now.

You do realise that the "Service industry" isn't just McD's, right?

And the rest of your previous post is still pure idiocy.
 
pgs
Free Thinker
#30
Quote: Originally Posted by mentalfloss View Post

No that is too partisan.

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

Gold Copper Lumber Salmon and other seafood .natural gas .All produced in B.C.
do these commodities not affect the Canadian $ ?

Quote: Originally Posted by Tecumsehsbones View Post

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.

I like to call it crony capitalism .