Greek Financial Problems, now China....

Comments

• Firewallcano

  July 2015

  i don't know what the Tourists from Greece are going to do, they can't go home because they're financially cut off. i don't know what the Tourists from Greece are going to do, they can't go home because they're financially cut off.

  They can, tourists have just been told to take money with them, dont get me wrong there should be a higher alert for robberies etc but mostly things will run as normal. You can still take money out, just at a lower rate and foreign citezens shouldn't be affected at all. Even if the money completley dries up anarchy wont occur for a bit after that. Not to mention tourism is literally greece's only money gain they would be daft to destroy it

  Frankly greece is the first milestone in the EU being re modified/nullified
• InGen_Nate_Kenny Moderator

  July 2015

  Those were just Chinese billionaires from my understanding, shouldn't do anything.
• divisionten

  July 2015 edited July 2015

  /pushes glasses up/

  The difference here is you're talking about a stock market, particularly in a country which still has state-run enterprise, and a nation going into debt. Individual Chinese companies have taken a pretty heavy hit, for sure. But China is able to mitigate this because they peg their currency to a basket of foreign currencies (by buying foreign currency and keeping it in reserve to flood the market with yuan until the parity is what the Party wants).

  The short version? Ouch for Chinese companies, and worrying for sure.

  But nothing near Greece's levels, and the Chinese government has a pegging system in place for their own money.
• CrazyGeorge Banned

  July 2015

  I wonder if this has affected the value of property or not, in Greece.

  divisionten posted: »

  /pushes glasses up/ The difference here is you're talking about a stock market, particularly in a country which still has state-run enter… moreprise, and a nation going into debt. Individual Chinese companies have taken a pretty heavy hit, for sure. But China is able to mitigate this because they peg their currency to a basket of foreign currencies (by buying foreign currency and keeping it in reserve to flood the market with yuan until the parity is what the Party wants). The short version? Ouch for Chinese companies, and worrying for sure. But nothing near Greece's levels, and the Chinese government has a pegging system in place for their own money.
• mosfet

  July 2015

  i don't know what the Tourists from Greece are going to do, they can't go home because they're financially cut off.

  I actually read a story about this. Greek newlyweds went to New York for their honeymoon, then all this shit broke out, their credit cards got declined, and they had no money with five days until their return plane trip. Some Greek Orthodox Church ended up paying for their meals until their flight home. I can't imagine the nightmare for any Greek tourists who didn't buy a return ticket or pay for their accommodations up front.

  Greece is pretty fucked. The people share the blame because tax evasion is rampant and they kept electing people who racked up their debt level. That being said, I don't understand why Greece specifically is being singled out. Depending on which metric you use, their debt-to-GDP ratio is about the same as Japan (better in certain metrics), not terribly worse than other countries, and they managed to run a surplus recently.
• divisionten

  July 2015

  /pushing glasses up higher/

  Sorry, you literally just touched on my Master's thesis with this. Almost all of Japanese debt is held by Japanese people, in the form of post-war bonds, telecom bonds, and the like. Families have been holding on to their writs for years without cashing in on them. If Japan were to say, tomorrow, whoops! we're defaulting, it really wouldn't mean much, except for a minority of people who wouldn't mind cashing in.

  Greece is part of the EU, and if they defaulted, they'll bring down healthy economies, like Germany's, with them.

  mosfet posted: »

  i don't know what the Tourists from Greece are going to do, they can't go home because they're financially cut off. I actually read … morea story about this. Greek newlyweds went to New York for their honeymoon, then all this shit broke out, their credit cards got declined, and they had no money with five days until their return plane trip. Some Greek Orthodox Church ended up paying for their meals until their flight home. I can't imagine the nightmare for any Greek tourists who didn't buy a return ticket or pay for their accommodations up front. Greece is pretty fucked. The people share the blame because tax evasion is rampant and they kept electing people who racked up their debt level. That being said, I don't understand why Greece specifically is being singled out. Depending on which metric you use, their debt-to-GDP ratio is about the same as Japan (better in certain metrics), not terribly worse than other countries, and they managed to run a surplus recently.
• mosfet

  July 2015

  Thanks for the info. That explains a lot. I have a question or two, if you don't mind.

  if they defaulted, they'll bring down healthy economies, like Germany's, with them.

  I thought Greece has already defaulted, and Germany has been saying that they've been working to limit the fallout of a Greek default. Am I wrong? If not, are Germany's statements accurate or is it bravado?

  divisionten posted: »

  /pushing glasses up higher/ Sorry, you literally just touched on my Master's thesis with this. Almost all of Japanese debt is held by Jap… moreanese people, in the form of post-war bonds, telecom bonds, and the like. Families have been holding on to their writs for years without cashing in on them. If Japan were to say, tomorrow, whoops! we're defaulting, it really wouldn't mean much, except for a minority of people who wouldn't mind cashing in. Greece is part of the EU, and if they defaulted, they'll bring down healthy economies, like Germany's, with them.
• divisionten

  July 2015

  Sorry, I was simplifying for the sake of explanation- I don't want to assume people know the whole situation.

  Yeah, Germany is trying to deal with the fallout. It's still leaking all over the place though, and it's really messing with the Euro.

  mosfet posted: »

  Thanks for the info. That explains a lot. I have a question or two, if you don't mind. if they defaulted, they'll bring down healthy e… moreconomies, like Germany's, with them. I thought Greece has already defaulted, and Germany has been saying that they've been working to limit the fallout of a Greek default. Am I wrong? If not, are Germany's statements accurate or is it bravado?
• DAISHI

  July 2015

  Well maybe Germany should, you know, renegotiate the terms. The currents ones haven't worked and Greece's economy has only declined further under them.

  divisionten posted: »

  Sorry, I was simplifying for the sake of explanation- I don't want to assume people know the whole situation. Yeah, Germany is trying to deal with the fallout. It's still leaking all over the place though, and it's really messing with the Euro.
• PuhChewyChomp

  July 2015

  If I'm remembering right Greece had some anarchists riot a couple years ago.

  Firewallcano posted: »

  i don't know what the Tourists from Greece are going to do, they can't go home because they're financially cut off. i don't know what the To… moreurists from Greece are going to do, they can't go home because they're financially cut off. They can, tourists have just been told to take money with them, dont get me wrong there should be a higher alert for robberies etc but mostly things will run as normal. You can still take money out, just at a lower rate and foreign citezens shouldn't be affected at all. Even if the money completley dries up anarchy wont occur for a bit after that. Not to mention tourism is literally greece's only money gain they would be daft to destroy it Frankly greece is the first milestone in the EU being re modified/nullified
• CrazyGeorge Banned

  July 2015

  How bad is it, should i call my Financial Panther?

  divisionten posted: »

  Sorry, I was simplifying for the sake of explanation- I don't want to assume people know the whole situation. Yeah, Germany is trying to deal with the fallout. It's still leaking all over the place though, and it's really messing with the Euro.