Greece may not pay back the money they owe several European financial institutions, according to unconfirmed rumors which have been circulating around. In the wake of this, European stocks fell. The outcome of the talks will confirm whether Greece [will] or won't pay their debt. Should the Greeks actually default, would this negatively impact European markets?
I would see this as an eventual buying opportunity elsewhere in other European countries that are doing much better.
There will probably be some sheep selling the few hours after they actually default, but that will just be a brief buying opportunity. I would stay away from Greek banks, but otherwise look for large, international greek companies to buy if they get panic sold. I am going to be watching TNP ( greek oil transport company ). If it takes more than a 20% hit on default-day, I am buying some. Great company in an industry that is already at a great time to buy.
I'm keeping my eyes on this. I think that following their default (which will come sooner or later) there will be some decent buying opportunities, not only in Greece but all over Europe and probably all over the world too. I'll be mainly eyeing companies that have nothing to do with Greece, though picking up a Greece ETF after the turmoil isn't out of the question either.
While it's becoming easy to see that Greece want Europe to wave the rest of the loan, I'm not entirely sure that other European countries will agree to this. For one, they can't just turn round and say they're not paying it, I'd have assumed some measures would have been put in place just in case this situation came up.
It's called a default. The debtor (in this case the ECB, IMF and several individual countries among others) simply has no say in it... doesn't matter if they agree or not. If Greece can't pay their debt then they simply can't! It's not because they choose not to, it's because they do not have the money.
Because the Athens stock exchange in general will get beaten up. So pretty much all the stocks will be declining, some more and some less. Could be a great buying opportunity when companies that have their operations abroad (and specifically those who get their earnings in USD/EUR) drop along with the rest of the market.
but also probably results in no access to capital markets, capital controls, flight of depositors. they will still need to borrow from somewhere and that will still come with conditions
I really don't know what will happen to Greece or to the markets, it's highly unexpected, but I am not seeing this current government very willing to honor the agreements.
