Greek Default Threat Is Overblown

Must be a slow month for financial news because of all the talk about Greece and its probable default. Yes, it will be tragic to the Greeks. But this will not affect the global economy whatsoever. The only ones who should be concerned about this are the creditors and even they should not be that concerned. Most of that money was created out of thin air at one point and time by fractional reserve banking. So a few banks lose some money.....this is no reason to get your britches in an uproar. The sky is not falling and your money will be as good tomorrow if there is a default as it is today.

Believing in anything else is just fearmongering and to be ignored. If anything drastic does happen you can bet your sweet but it was arranged and planned by the financial industry to put fear in the hearts and minds of the people of the world, not because there was a real reason for it to happen.

 

Tragic not only to the Greeks, but also to other European countries who have a lot of money there. To be honest I don't know what will happen to the EU is Greece is kicked out.

 

I would like to remain optimistic,but..Who knows what is around the corner.
Here (UK),the EU referendum has been postponed.
News today was that it wont be in May 2016 but that it will be at some point between now and the end of 2017.?? (Confused?Yeah,me too).
Certain businesses based in the UK have spoken of leaving if the UK votes out.That has since been retracted today.
Im sure the Greece thing is a contributing factor to the postponement.If the outcome is bad for Greece,it may sway the vote.

 

The creditors could be in big trouble too, mainly because the European economy isn't doing tha great in the first place. A lot of the individual countries have also loaned a lot of money to Greece!

I do think this Greece business has and will continue to have a big effect on the markets in the short term. But the long term effect on global economy... it's like a drop of water in an ocean.

 

I don't understand how this Greek government is taking this stand, to they hope to be forgiven again? That will not happen and to be honest I am clueless about what will happen next.

 

I think the Greek government are just trying to give themselves more time to pay to be honest. I think they have been told in no uncertain terms that they won't be walking away from this debt, and the EU will expect full repayment as was originally agreed.

 

They know the IMF/ECB has a lot to lose. So I guess they are very firm in their "demands" as they hope the IMF/ECB will bend.
Also do note that the Greece has a history of defaulting.. ie borrowing money, using it and not paying back. They have done it many many times, hard to know exactly how many but during the past 200 years it has happened at least 5 times. And we are heading down that path again... I guess they have found the way to endless free money.

 

I feel like only negative things would come of that. I don't see a positive outcome.

 

The wise JR has spoken! I agree that no one should sweat this unless they have ties with European countries.