??? I thought Greece and the EU just announced that everything was hunky dory. I guess they join the long list of political entities that sometimes bend the truth just a leeeeetle.
Here's the truth. Greece is bankrupt. Bailout measures taken by the EU so far have been for the benefit of BANKS, not Greece. Greece's best move at this point would be to remain with the EU, but promptly default on all debts. They won't do this, of course....
The EU, meanwhile, is petrified that Greece might actually leave. That would greatly disturb Euro investors. It's not that Greece itself much matters, but the door would then be open, the precedent set, for other, larger countries to take similar action. Worse, the departure of a nation even as small as Greece would result in the need for a revaluation of the Euro. THAT would create confusion on a massive scale. The possibility that such confusion might occur REPEATEDLY in the future could be enough to sap investors of any confidence in the currency.
The situation is very serious. I'm astounded that so few Europeans have yet taken appropriate steps - but this is very similar to American investors who, even now, aren't investing in gold. When it comes to REAL danger, people are just not very bright. Time and again, they put their heads in the sand and hope the problem just goes away.
MAY 9, 2011
GLOBAL MARKETS: European Stocks Lower On Greece Fears
By Toby Anderson & Michele Maatouk
Of DOW JONES NEWSWIRES
LONDON (Dow Jones)--European stocks were mostly lower Monday, with concerns about the possibility of Greece leaving the euro zone casting doubt over the long-term prospects for the single currency.
Greek and European Union officials met last Friday to discuss Greece's funding needs, amid reports that Greece has been slipping further behind targets for cutting its budget deficit and is now expected to need nearly EUR30 billion of extra financing for 2012.
Still, precisely because conditions are so tough for Greece, that may buttress the status quo, said some traders who urged a note of caution before any panic selling.
"Athens making a departure from the euro zone seems unlikely at this stage since the economy and financial position is too precarious to deal with such an upheaval," says Kathleen Brooks at Forex.com, a brokerage. She noted also that French news reports said the cost of another Greek bailout would likely be in the region of EUR25 billion-EUR30 billion, a figure Brooks said was a "manageable sum."
Still, banking stocks took a hit, sending the Stoxx Europe 600 banks index down 1.4% to 196.35.
The article continues: http://online.wsj.com/article/BT-CO-20110509-705251.html
Gold is $1,581/oz today. When it hits $2,000, it will be up 26.5%. Let's see how long that takes. - De 3/11/2013 - ANSWER: 7 Years, 5 Months
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