IIF says there are some very important and damaging ramifications that would result from a disorderly default on Greek govt debt

View Comments

  • IIF document says hard default in Greece would lead to sizeable bank recapitalization costs, could easily be 160 bln euros
  • Default would hit ECB, Portugal, Ireland, Spain and Italy would also likely need support
  • “Hard to see” how contingent liabilities would not exceed 1 trillion euros

Reuters reporting.

Well there’s our first tape bomb.  EUR/USD down through 1.3200, presently at 1.3188.

Guess the IIF trying to concentrate a few minds as to what lies in store if/when Greece defaults.

2 Comments

  1. Got to wonder what the IIF will get paid for a successfull PSI :)

  2. I think the key term I continue to see coming up is “disorderly”. It seems like all the various acronyms are trying to do an “orderly” Greek default. Sort of like the idea of a “soft landing”. If that is possible, then banks figuring out CDS are worthless might be the tipping point in all this.

Top

© Copyright 2014 ForexLive™  |  Advertise With Us  |  Login To Comment  |  Sitemap

HIGH RISK WARNING: Foreign exchange trading carries a high level of risk that may not be suitable for all investors. Leverage creates additional risk and loss exposure. Before you decide to trade foreign exchange, carefully consider your investment objectives, experience level, and risk tolerance. You could lose some or all of your initial investment; do not invest money that you cannot afford to lose. Educate yourself on the risks associated with foreign exchange trading, and seek advice from an independent financial or tax advisor if you have any questions.

ADVISORY WARNING: FOREXLIVE™ provides references and links to selected blogs and other sources of economic and market information as an educational service to its clients and prospects and does not endorse the opinions or recommendations of the blogs or other sources of information. Clients and prospects are advised to carefully consider the opinions and analysis offered in the blogs or other information sources in the context of the client or prospect's individual analysis and decision making. None of the blogs or other sources of information is to be considered as constituting a track record. Past performance is no guarantee of future results and FOREXLIVE™ specifically advises clients and prospects to carefully review all claims and representations made by advisors, bloggers, money managers and system vendors before investing any funds or opening an account with any Forex dealer. Any news, opinions, research, data, or other information contained within this website is provided as general market commentary and does not constitute investment or trading advice. FOREXLIVE™ expressly disclaims any liability for any lost principal or profits without limitation which may arise directly or indirectly from the use of or reliance on such information. As with all such advisory services, past results are never a guarantee of future results.