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

[Tecumsehsbones]

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.

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]

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 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]

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]

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.

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

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]

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]

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]

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

 

[CDNBear]

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]

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 $ ?

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 .

 

[mentalfloss]

I never said it was, but I am referring to retail.

 

[Tecumsehsbones]

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.



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




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

All legitimate considerations. My point is that the illegitimate (in my opinion) consideration that caused the lenders to be to loosey-goosey and willing to throw good money after bad was the perception that they were backstopped.

I DO NOT mean this as a dig, but for someone who is normally very suspicious of government fiddling, you seem to oddly undervalue this factor in the sheaf of universally bad decisions that led to this situation.

 

[pgs]

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.

So when Henry Ford setup his production line , in effect creating the auto industry he had Government investment ?
A pretty significant industry I would say .

 

[CDNBear]

I never said it was, but I am referring to retail.

I know what you were focussing on, it's how you roll, dishonestly.

NorAm has been pricing itself out of manufacturing for years. Leaving resource exploitation and the service industry to fill the void.

You support a gov't that has done everything in it's power to actually stifle manufacturing growth in Ontario for over 12 years. While you rail against a gov't that simply played on a national strength.

Making the commentary in your posts, and the policy shifts you seek, absurd, and that's being generous.

 

[Blackleaf]

Greece hasn't posed much of a threat to anybody since about 150BC.

 

[CDNBear]

Greece hasn't posed much of a threat to anybody since about 150BC.

Go back to your UFO's, Fairies and embarrassingly stupid British mistakes. The adults are talking here.

 

[Blackleaf]

-1

Sadly (for the Greeks), it's true.

 

[CDNBear]

Sadly (for the Greeks), it's true.

Go back to your UFO's, Fairies and embarrassingly stupid British mistakes. The adults are talking here.

 

[Blackleaf]

Greece hasn't been a Great Power since the Romans invaded the Greek Peninsula in 146BC and made it part of the Roman Empire. Greece hasn't posed much of a threat to anybody, economically, politically and military, since Hipparchus determined the equinoctial point.

Nowadays it's a fourth rate power which can't fight its way out of a wet paper bag and needs to be propped up by the EU, a second-rate, declining power.

My sister's pet dog poses more of a threat to the world economy than Greece.

 

[captain morgan]

All legitimate considerations. My point is that the illegitimate (in my opinion) consideration that caused the lenders to be to loosey-goosey and willing to throw good money after bad was the perception that they were backstopped.

I DO NOT mean this as a dig, but for someone who is normally very suspicious of government fiddling, you seem to oddly undervalue this factor in the sheaf of universally bad decisions that led to this situation.

I appreciate your observations and do not take them as a dig at all.

Much of what I posted earlier has a hypocritical streak contained within, particularly as it relates to due diligence and the risk/reward relationship... Add to this the the gvt guarantees from the EU member nations and I fully see your point.

That said, from the finance perspective, dealing with 1st world gvts has generally been seen as a no-brainer and capital groups have been lazy when it comes to dealing with them.

Up to now, Argentina was a big eye opener that should have motivated the finance industry to rethink their policies, but clearly that didn't happen.... I'd wager that this will change now.