agoreira

Looks quite likely now they have decided to have a referendum on whether to accept the long awaited bail out fund. I bet Sarko and the Fraulein ain't feeling so smug now! I see the Footsie is down over 2% already, could be a bumpy ride ahead! Abróchense los cinturones de seguridad.

steviedeluxe

Some people are saying it will depend on how the referendum is phrased. If it asks "Do you want to accept the austerity measures?" then there'll be a resounding NO (although they'll still be unable to borrow to finance their economy outside the Euro). If the question is "Do you want to stay part of the Euro", pundits are claiming the Greeks will vote Yes. I'm not so sure of that, but vamos a ver....

agoreira

Yes, it'll be like asking turkeys to vote for Christmas, can't see that happening.

HBG

I've been listening to what really informed people have been saying this evening, and no one is cheering the news. Quite a few have been comparing what could happen if Greece goes bankrupt to the bankruptcy which started the Great Depression in the thirties, the Credit Anstalt affair.

Even the daftest Eurosceptics are suddenly keeping quiet; the idea of soup kitchens and the rumblings of war are not what they envisage in their nonsensical ramblings.

steviedeluxe

Levels of tourism are up this year, and the people who run Heathrow are screaming to be able to build another runway. So it seems some people are expecting major boom times, others the slump of all slumps. I've no idea who's right, but I'm keeping an eye on the situation just the same. Time to stock up on tinned foods, rice and lentils?

steviedeluxe

Things are happening behind the scenes, and it doesn't look pretty. Apparently the chiefs of staff of the armed forces in Greece have been sacked. Were they planning a coup?

steviedeluxe

Where's everyone gone? Down the cashpoint? D'OHhhhh

megmet

Probably....
It's now 1.16€ to the pound, that's not as good as it was just a few years ago, but much better than the one for one we had not long back!

steviedeluxe

I think it's more a worry that the banks who've lent heavily to Greece (iirc RBS is one) will now lose everything...But still we can rely on the government to help them out again. Can't we?

Fredbargate

The mechanics of leaving the Euro would be interesting.

Lets say they returned to the Drachma at 340.75 to the Euro.

Who would change their money as it would appear the Drachma would collapse.

Therefore it would make sense to keep your Euros and exchange them at a later date with a better exchange rate.

steviedeluxe

I don't even understand why Greece has to leave the Euro, even if they don't pay their debts? Back in the 80s didn't Liverpool council go bust - I don't remember people saying Liverpool had to leave the pound
People say it matters where a Euro note is printed. I can't see this either - does a 50 Euro note that a German pays for his bill in Mallorca suddenly become more valuable than a 50 Euro that a Barcelona businessman uses in Munich?
No wonder I never became an economist!

VFR

Maybe Greece is just trying to wind up Merkel & her French poodle ?

jackytoo

France and germany stand to lose the most if Greece defaults. The biggest problem is if Greece does default who is next.

According to figures from the Bank for International Settlements, UK banks hold a relatively small $3.4bn (£2.1bn) worth of Greek sovereign debt, compared with banks in Germany, which hold $22.6bn, and France, which hold $15bn.

When you add in other forms of Greek debt, such as lending to private banks, those figures rise to $14.6bn for the UK, $34bn for Germany and $56.7bn for France

sonnyc

Remember when it was 1.80 I think that was as high as it got.

Fredbargate

The best £ exchange rate on the street I can remember was 284 pts equivalent to €1.71 in late 2000

I don't remember it ever getting that high since the € was introduced.