In an interview with the newspaper, Papademos also urged Greek politicians to pass the economic measures demanded by Greece's foreign lenders in exchange for bailout aid, saying vested interests were blocking changes needed to revive the moribund economy.

Papademos said that if Greece did not receive 100 percent participation in a program in which bondholders would voluntarily write down $130 billion from Greece's $450 billion debt, the country would consider passing a law to require the holdouts to take losses.

http://ca.news.yahoo.com/greek-pm-says-creditors-may-forced-losses-report-043723995.html

This should work out very well for them.

"es, we would like to borrow some more money...we promise to pay it back this time plus interest!"

 

-----signature-----

The EU should cut them loose and let them fend for themselves.

If Greece can whore themselves out to a suitably drug-addled john who can ignore their diseased state... good for them.

 

-----signature-----

They clearly can't pay back their debts. There is just no way. So I'm not sure what you want them to do. People who lent to them have only themselves to blame if they end up taking a bath on those loans.

I thought passing legislation like this and saying eff you to everyone else was a thing US RWN's were proud to do, is that not the case anymore?

 

-----signature-----

In the non-government world, this is exactly what happens.


The borrower works with the lender to write down the loans first. If that doesnt work the borrower uses legislation (bankruptcy process) to force lenders to accept less. This is a known risk when you lend someone money.....ideally it causes you to think about the repayment ability of the borrower.


Lenders have spent alot of time and effort the last few years trying to pretend that this is not the normal course of business for private and public debt.


Although we might give lenders a little compassion....they probably werent anticipating the two major central banks working so hard to keep a lid on economic growth.

default and liquidate government holdings to pay off what it can

 

-----signature-----

More bullshite from the goldfish brigade.

No it isn't. What happens is, creditors point out an entity is bankrupt and FORCE it into bankruptcy when the loans come due and they are insolvent.

Greece is insolvent. In the non-government world, they'd be

a) declared bankrupt and in the process of being dissolved right now, or,
b) declared bankrupt and in the process of debt-reorganization.

The key phrase being "declared bankrupt."

All this... ALL of it... is political maneuvering so the country can avoid saying what everyone knows. "We are bankrupt. We are defaulting. We must now take our credit hit for years and live within our means. All private insurance and credit swaps in the market used to insure private losses legally become active because we've defaulted and are insolvent."

It's all a joke. An incredibly inefficient, politically-driven joke.

 

-----signature-----

Sometimes you agree with what I say but you make a big production of gnashing your teeth, acting outraged and pretending like you are saying something different.


Its strange.


Greece is trying to negotiate with its creditors. This is just like what happens in the private world. The more creditors you have, the less likely this process is to be successful.


If it doesnt work, Greece will move into a debt reorganization by legislation and force of law process just like a private company would.


There is no bankruptcy process for a national government. Bankruptcy laws are written by a national government for the organizations within that country. So other legislation is necessary.


I dont know if you understand the word 'insolvent'.

We aren't agreeing. You're just too stupid to know the difference.

You say this is "precisely like what happens in the non-government world", then in the next breath admit, "but there is no bankruptcy for governments".



I also know precisely what insolvent is. It's Greece.

 

-----signature-----