Friday, July 1, 2011
Greece is bust, it is as simple as that
Marc Faber : "Greece is a bust, it is as simple as that. If it was a company, it would go into bankruptcy, into liquidation, into restructuring and the bond holders or the creditors would have to take huge haircuts, probably in the order of 70-80%. But here comes the government, of course the government and the IMF and the ECB, they know everything better than anybody else. So they bail it out. This is the problem I just explained. The financial system went bust. Now the governments are extending the credit and as a result, their credit worthiness is declining and eventually a lot of countries will go bust because they help the weak companies or the weak country survive. " - in ET Now
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Realitifnya currency values, it is difficult to measure accurately because of the variable value of money is controlled by the prime mover of the economy, lasting impact will be felt by any country with a weak defense of the currency pressure if attacked frequently. The best way of balancing currency currency bind temporarily but if it continues down the value of currency in a large percentage, it can be done in a certain period.
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