Best of the Week
Most Popular
1. Investing in a Bubble Mania Stock Market Trending Towards Financial Crisis 2.0 CRASH! - 9th Sep 21
2.Tech Stocks Bubble Valuations 2000 vs 2021 - 25th Sep 21
3.Stock Market FOMO Going into Crash Season - 8th Oct 21
4.Stock Market FOMO Hits September Brick Wall - Evergrande China's Lehman's Moment - 22nd Sep 21
5.Crypto Bubble BURSTS! BTC, ETH, XRP CRASH! NiceHash Seizes Funds on Account Halting ALL Withdrawals! - 19th May 21
6.How to Protect Your Self From a Stock Market CRASH / Bear Market? - 14th Oct 21
7.AI Stocks Portfolio Buying and Selling Levels Going Into Market Correction - 11th Oct 21
8.Why Silver Price Could Crash by 20%! - 5th Oct 21
9.Powell: Inflation Might Not Be Transitory, After All - 3rd Oct 21
10.Global Stock Markets Topped 60 Days Before the US Stocks Peaked - 23rd Sep 21
Last 7 days
Chinese Tech Stocks CCP Paranoia, VIES - Variable Interest Entities - 19th Oct 21
Inflation Peaked Again, Right? - 19th Oct 21
Gold Stocks Bouncing Hard - 19th Oct 21
Stock Market New Intermediate Bottom Forming? - 19th Oct 21
Beware, Gold Bulls — That’s the Beginning of the End - 18th Oct 21
Gold Price Flag Suggests A Big Rally May Start Soon - 18th Oct 21
Inflation Or Deflation – End Result Is Still Depression - 18th Oct 21
A.I. Breakthrough Could Disrupt the $11 Trillion Medical Sector - 18th Oct 21
US Economy and Stock Market Addicted to Deficit Spending - 17th Oct 21
The Gold Price And Inflation - 17th Oct 21
Went Long the Crude Oil? Beware of the Headwinds Ahead… - 17th Oct 21
Watch These Next-gen Cloud Computing Stocks - 17th Oct 21
Overclockers UK Custom Built PC 1 YEAR Use Review Verdict - Does it Still Work? - 16th Oct 21
Altonville Mine Tours Maze at Alton Towers Scarefest 2021 - 16th Oct 21
How to Protect Your Self From a Stock Market CRASH / Bear Market? - 14th Oct 21
The Only way to Crush Inflation (not stocks) - 14th Oct 21
Why "Losses Are the Norm" in the Stock Market - 14th Oct 21
Sub Species Castle Maze at Alton Towers Scarefest 2021 - 14th Oct 21
Which Wallet is Best for Storing NFTs? - 14th Oct 21
Ailing UK Pound Has Global Effects - 14th Oct 21
How to Get 6 Years Life Out of Your Overclocked PC System, Optimum GPU, CPU and MB Performance - 13th Oct 21
The Demand Shock of 2022 - 12th Oct 21
4 Reasons Why NFTs Could Be The Future - 12th Oct 21
Crimex Silver: Murder Most Foul - 12th Oct 21
Bitcoin Rockets In Preparation For Liftoff To $100,000 - 12th Oct 21
INTEL Tech Stock to the MOON! INTC 2000 vs 2021 Market Bubble WARNING - 11th Oct 21
AI Stocks Portfolio Buying and Selling Levels Going Into Market Correction - 11th Oct 21
Stock Market Wall of Worry Meets NFPs - 11th Oct 21
Stock Market Intermediate Correction Continues - 11th Oct 21
China / US Stock Markets Divergence - 10th Oct 21
Can US Save Taiwan From China? Taiwan Strait Naval Battle - PLA vs 7th Fleet War Game Simulation - 10th Oct 21
Gold Price Outlook: The Inflation Chasm Between Europe and the US - 10th Oct 21
US Real Estate ETFs React To Rising Housing Market Mortgage Interest Rates - 10th Oct 21
US China War over Taiwan Simulation 2021, Invasion Forecast - Who Will Win? - 9th Oct 21
When Will the Fed Taper? - 9th Oct 21
Dancing with Ghouls and Ghosts at Alton Towers Scarefest 2021 - 9th Oct 21
Stock Market FOMO Going into Crash Season - 8th Oct 21
Scan Computers - Custom Build PC 6 Months Later, Reliability, Issues, Quality of Tech Support Review - 8th Oct 21
Gold and Silver: Your Financial Main Battle Tanks - 8th Oct 21
How to handle the “Twin Crises” Evergrande and Debt Ceiling Threatening Stocks - 8th Oct 21
Why a Peak in US Home Prices May Be Approaching - 8th Oct 21
Alton Towers Scarefest is BACK! Post Pandemic Frights Begin, What it's Like to Enter Scarefest 2021 - 8th Oct 21
AJ Bell vs II Interactive Investor - Which Platform is Best for Buying US FAANG Stocks UK Investing - 7th Oct 21
Gold: Evergrande Investors' Savior - 7th Oct 21
Here's What Really Sets Interest Rates (Not Central Banks) - 7th Oct 21

Market Oracle FREE Newsletter

How to Protect your Wealth by Investing in AI Tech Stocks

Greece: Act One of a Global Debt Drama - Video

Stock-Markets / Eurozone Debt Crisis Jul 08, 2015 - 05:39 PM GMT

By: EWI

Stock-Markets

Greek citizens vote "Yes" to kick the can down the road

Editor's note: You'll find the text version of the story below the video.


In December 2009, Greece was encumbered with debt amounting to 113% of GDP (nearly double the Eurozone limit of 60%).

In May 2010, Eurozone members and the IMF agreed to a €110 billion Greek bailout.

The can was kicked down the road.

Today, Greece's debt-to-GDP is nearly 180%!

Yet on July 5, Greek voters loudly said "No!" to the austerity reforms proposed by creditors. In other words, it was a "yes" vote to (once again) kick the financial can down the road.

The austerity package would have included pension cuts and value-added tax increases. Greece's prime minister wants a less harsh bailout deal, and hopes the "no" vote will provide leverage in negotiations with Eurozone creditors.

But Greece still owes €240 billion to its creditors. Any repayment plan will likely involve sacrifice. What's more, Greece has suffered a 25% GDP decline since 2010.

The often-kicked "can" may have run out of road.

Willingness to make politically difficult compromises is dwindling in both Greece and among its creditors. Avoiding a financial and economic meltdown in Greece would likely require a level of flexibility that none of the important actors in the latest Greek drama have shown over the past year.

The Wall Street Journal, July 6

No matter how Europe's financial authorities respond to Greece's vote, the fear of default is likely to spread beyond that country's borders.

The bond market rout that began in Greece last year spread to Portugal, Italy and Spain, starting in March 2015. The next crises could begin in any one of these countries but, ultimately, the credit crunch will turn its sights to much bigger targets. Ten-year yields in France have jumped fourfold since their April 2015 low, and this year's bond sell-off has likewise sent yields soaring on the once mighty German bund. ... Most of Europe's debt will eventually undergo a broad-based and long-term decline -- not because investors will worry about high rates of inflation, but because they will worry about default.

The European Financial Forecast, July 2015

Whether Greece exits the Eurozone or not remains to be seen.

One thing appears certain: the world will soon shift its attention from the Greek debt drama to one that plays out on the global stage.


Global Insight: Europe's Debt-Dependent Economy
Free report from Elliott Wave International

Europe is in the world spotlight this month, with Greece's future hanging in the balance. But Greece is just one part of the problem. Enjoy an excerpt from EWI's Brian Whitmer from the June European Financial Forecast to see just how precarious Europe's financial situation has become.

Read your free report now >>


This article was syndicated by Elliott Wave International and was originally published under the headline (Video) Greece: Act One of a Global Debt Drama. EWI is the world's largest market forecasting firm. Its staff of full-time analysts led by Chartered Market Technician Robert Prechter provides 24-hour-a-day market analysis to institutional and private investors around the world.

About the Publisher, Elliott Wave International
Founded in 1979 by Robert R. Prechter Jr., Elliott Wave International (EWI) is the world's largest market forecasting firm. Its staff of full-time analysts provides 24-hour-a-day market analysis to institutional and private investors around the world.


© 2005-2019 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


Post Comment

Only logged in users are allowed to post comments. Register/ Log in