Monday, July 04, 2011

S & P indicate French/German Greek Bond Roll Over would likely prove default! Juncker Gloats at Greece's misery!

The Globe and Mail from Canada, has the most recent update on the Greek Default, linked here.

An article from Der Spiegel International web pages, has some detail of the German exposure to a default, and what appears to be a boast, that most of this has now been passed to Europe's taxpayers. A quote:

Majority of Greek Bonds in Public Hands

The majority of outstanding Greek bonds are now in public hands -- those of the European Central Bank, which holds securities with a value of close to 50 billion, in particular. Greek banks are holding government bonds worth a similar amount.
Sources in the financial industry told wire services that Deutsche Bank's contribution is expected to be less than €1 billion. The partially-nationalized Commerzbank will account for considerably less than a billion. And the German government's bad banks, which have assumed the toxic equities removed from restructured German banks during the crisis, will contribute €1.2 billion. These banks are holding a particularly high number of Greek bonds that are threatened with default. Nevertheless, the voluntary debt swaps by private lenders would provide at least some relief for Greece. The French Banking Association estimates that €85.5 billion in Greek bonds will mature by mid-2014. The ECB holds around €25 billion of those bonds, with private institutions possessing the remaining €60.5 billion.

Meantime Jean-Claude Juncker, Prime Minister of Luxembourg's weekend gloating to Focus Magazine in Germany (a competitor to Der Spiegel) on the misery now to be inflicted on Greece, (presumably intended to convince the wider German public of how tough the smug and typical Luxembourger was being) met with an angry reaction in Greece, as reported in English from Ekatherimini, linked here.

Elsewhere as reported in Der Spiegel's, Seen from Berlin column, the German paper Die Welt, reportedly expresses the frustration of many Europeans at what is now being done in their name:

"For some time now, Europe has been more of a burden than something that is wanted. Political integration and insights into the meaning and goals of the EU are often limping miles behind economic integration. That distance is constantly growing, and that is extremely dangerous, because eventually the point will be reached where the patience of the European people has been exhausted. That wouldn't necessarily lead to populist revolts, but it would cause the foundations of the EU to crumble. As terribly banal as it may sound, it is crucial that the EU once again become a political project in the classical sense. The EU is in need of a rethink."



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