Bailouts Worse Case scenario

[hennyc]

I would love to hear other Traders opinions on all these bailouts happening in Greece and the rest of the world. What would happen if these debt problems continue (for example Greece), and as a result cannot pay there outstanding debts ? Will they continue to be bailed out over and over, how long can this last? Is bailing countries out of there debt really a sustainable idea has it ever been proven to work ? Basically I'm asking what the worst case scenario could be should this idea fail ? any opinions ?

[barry_1]

HELLO HENNIE,we don't get as many posts from u these days,glad to read one from u again.Interesting question,how ever perhaps no one can give a complete answer to.Here are are few pointers.My late father who worked in foreign exchange( when the entire department was a table and chair in the corner) with Standard Bank and i had this very conversation around the 1950 ties....He told me that no country can ever become entirely brankrupt ,no matter what....Then the country in trouble was the former Belgian congo tat had obtained independence in chaotic conditions

[barry_1]

posts on the blink again,...To continue,, back in the days of the Roman Empire ,emprors used to wipe out entire debts of theit nation every 20 years(the then lifespan) and start over again.You see debt and money is a mindset.We think it exists because we have been brought up with this belief.A few laws thrown at us help cement this belief,in our minds.....Fast forward to modern times.no major country can balance their budget and this malaise continues today.America is now the worst examlpe of this practice.They just print more money when ever they reach their ceiling....Debt is not the mark by which a strength of a nation is masrured....Go to my blog where i from time to time discuss Greece http://2010sashares.blogspot.com....briefly the trouble in Greece is that in Euro rules they are not allowed to print money to see themselves out of their dilemma.

[Rams]

the worst case scenario is a depression greater the "The Great Depression" I think Bernake did a PHD on the Great Depression. In essence the the IMF is bailing out the EU and since the US is the biggest contributor to the the IMF, the US is bailing out the EU after having bailed themselves out. But as far as Greece goes, the money will never be paid back as they will riot some more before accepting the austerity measures...and austerity measures decreases growth even more making payments less likely in the long term. But, remember:Ben Bernake has a PHD on the Great Depression, so Greece may not be too big to fail but certainly, Europe is too big to fail!