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Don’t Get the Greek Financial Crisis? Read This

Posted By admin On June 22, 2011 @ 3:27 am In Money Watch | Comments Disabled

Nicola Kean
Portfolio.com [1]
June 22, 2011

The Greek financial crisis has been the most important economic story of the year—but what it actually means can be lost in breathless talk of defaults and loan tranches.

Luckily for those of us who aren’t keeping a close eye on the bond market or the price of the Euro, Reuters has put together a quick guide to the Greek crisis [2]. The takeaway: Greece is on the verge of a Lehman Brothers-sized collapse.

So, why does it matter to the rest of the world? In short, if Greece defaults on its loans, a lot of European banks that hold the debt would suffer. The credit market would freeze—meaning banks may stop lending to each other. Not a positive thing for a global economy still in recovery.

Nor is Greece’s current crisis a sudden event; this has been building up for years. If you’ve got more time this afternoon, author Michael Lewis [3] (of Liar’s Poker [4] and The Blindside [5] fame) wrote a longer piece for Vanity Fair last year [6] tracing the root causes of Greece’s woes. It’s pretty astounding.

Full article here [1]

Dont Get the Greek Financial Crisis? Read This  030511banner3 [7]

Stock up with Fresh Food that lasts with eFoodsDirect (AD) [8]

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URL to article: http://www.prisonplanet.com/dont-get-the-greek-financial-crisis-read-this.html

URLs in this post:

[1] Portfolio.com: http://www.portfolio.com/views/blogs/daily-brief/2011/06/21/why-the-greek-financial-crisis-is-important

[2] Reuters has put together a quick guide to the Greek crisis: http://www.reuters.com/article/2011/06/20/greece-crisis-quickguide-idUSLDE75G18Z20110620

[3] Michael Lewis: http://www.vanityfair.com/contributors/michael-lewis

[4] Liar’s Poker: http://www.amazon.com/Liars-Poker-Rising-Through-Wreckage/dp/0140143459

[5] The Blindside: http://www.amazon.com/Blind-Side-Evolution-Game/dp/039306123X

[6] wrote a longer piece for Vanity Fair last year: http://www.vanityfair.com/business/features/2010/10/greeks-bearing-bonds-201010

[7] Image: http://www.stansberryresearch.com/pro/1103PSIEOAVD/PPSIM375/PR

[8] Stock up with Fresh Food that lasts with eFoodsDirect (AD): http://www.efoodsdirect.com/

[9] Moody’s credit ratings agency warns Greek debt crisis could spread to UK after three die in battle of Athens: http://www.prisonplanet.com/moodys-credit-ratings-agency-warns-greek-debt-crisis-could-spread-to-uk-after-three-die-in-battle-of-athens.html

[10] Greek crisis refuses to go away: http://www.prisonplanet.com/greek-crisis-refuses-to-go-away.html

[11] Europe warned of financial chaos over Greek debt crisis: http://www.prisonplanet.com/europe-warned-of-financial-chaos-over-greek-debt-crisis.html

[12] Official Greek Response To Internet “Rumors” Of Imminent Greek Default: http://www.prisonplanet.com/official-greek-response-to-internet-rumors-of-imminent-greek-default.html

[13] Market Talk: Greek Finance Minister Says Separation From EU May Be Considered, Greek Gov’t Categorically Denies: http://www.prisonplanet.com/market-talk-greek-finance-minister-says-separation-from-eu-may-be-considered-greek-govt-categorically-denies.html

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