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... Overall government debt across the euro region swelled to 78.7 percent of GDP last year from 69.4 percent in 2008, the statistics office said.
Ireland and Greece
The European Commission in Brussels had previously forecast the euro region’s deficit to reach 6.4 percent of GDP in 2009, with Ireland and Greece at 12.5 percent and 12.7 percent, respectively. In 2010, the euro region’s deficit may widen to a record 6.9 percent of GDP, while state debt is seen surging to 84 percent of output, according to EU forecasts that are due to be revised on May 6.
The IMF said earlier this week that the main sources of sovereign risk in the 16-member euro region have shifted to reflect market concerns about fiscal sustainability. Greece and Portugal have become the “main contributors to inter-sovereign risk transfer,” the Washington-based fund said.
“Greece is a wake-up call,” Jose Vinals, director of the IMF’s monetary and capital markets department, told reporters on April 19. “What we are saying is ‘do not let the financial situation get out of hand and undertake the necessary measures precisely to remain on the safe side.”
Yeah, right! As if we are going to believe what the EU and IMF have to say... As excerpted from Lies, Damn Lies, and Sovereign Truths: Why the Euro is Destined to Collapse!
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and the EU on goverment balance??? Way, way, way off.
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Hey, if you think tha's bad, try taking a look at what the govenment of Greece has done with these fairy tale forecasts, as excerpted from the blog post "Greek Crisis Is Over, Region Safe", Prodi Says – I say Liar, Liar, Pants on Fire!…
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You are going to get negative surprises from Greece for quite some time, since they have been lying about their conditions for just as long.
For anyone so inclined to refer BoomBustBlog's investigative analysis to the reporters who penned the Bloomberg piece, you can reach them here: Simone Meier in Dublin at This e-mail address is being protected from spambots. You need JavaScript enabled to view it . Maybe we can get my "version of the Truth", (you know, the mathematical edition) published in the mainstream!
From the Greek Banking site, bankingnews.gr:
The uncertainty around the time the action mechanism of Greece will be directly, it will be in mid May, combined with the negative reports by Goldman Sachs and Morgan Stanley, provided that the country would result in a rescheduling of debt and re-revision of the deficit to 13.6% in 2009 dramatically changed the climate for bonds twoards the negative. In the bond spread to 562 basis points to 3 years to 10 years with the spread reached 785 basis points as a record of all time. The yield on 3 years at 8.7% is close to 9%. Also recorded in the CDS record which reached about 570 basis points.
The great increase in the spread in short periods is justified because of concerns that Greece or will not meet its obligations or epanadiparagmateftei debt developments and are extremely negative. In ASE climate obviously negative because investors realize that Greece is at an impasse.
It is unclear whether Greece refer to the IMF-EU directly or through May supported by the German finance minister is certain is that the market bet on a quick xekatharisma.Sto Mkt initial wait and became a new sell-off after the new jump in the deficit .
- More from the Greek banking site:
- Only 2 billion euros in funds have, Greece - On May 19 ending 8-9 billion22/04/10 12:54
The circumstances are historic, Greece stranded by having liquid funds have fallen ...
- Morgan Stanley: Does 'haircut' 30% debt to Greek!-Goldman Sachs: Wait restructuring! - Moore: persecuted Greece!22/04/10 10:14
"Haircut" in Greek debt was 30% in order to serve under the Morgan Stanley into today ...
- 3.5 billion euro damages - actual and accounting - the Greek banks bonds22/04/10 08:59
The very impressive size of 3.5 billion euros recorded in the portfolios of banks' real ...
- Why buy massive Greek foreign CDS - Germany is not covered bond - With Greek bonds 150 billion by the ECB22/04/10 08:50
A mystery has captured the market in recent days in Greece. Why buy mass-CDS ...
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Greece can not borrow before May 17 - way out direct recourse to IMF - The hedge funds are planning a technical default 22/04/10 - 07:22
More Bloomberg on the Greek tragedy:
The Pan-European Sovereign Debt Crisis, to date:
- The Coming Pan-European Sovereign Debt Crisis – introduces the crisis and identified it as a pan-European problem, not a localized one.
- What Country is Next in the Coming Pan-European Sovereign Debt Crisis? – illustrates the potential for the domino effect
- The Pan-European Sovereign Debt Crisis: If I Were to Short Any Country, What Country Would That Be.. – attempts to illustrate the highly interdependent weaknesses in Europe’s sovereign nations can effect even the perceived “stronger” nations.
- The Coming Pan-European Soverign Debt Crisis, Pt 4: The Spread to Western European Countries
- The Depression is Already Here for Some Members of Europe, and It Just Might Be Contagious!
- The Beginning of the Endgame is Coming???
- I Think It’s Confirmed, Greece Will Be the First Domino to Fall
- Smoking Swap Guns Are Beginning to Litter EuroLand, Sovereign Debt Buyer Beware!
- Financial Contagion vs. Economic Contagion: Does the Market Underestimate the Effects of the Latter?
- “Greek Crisis Is Over, Region Safe”, Prodi Says – I say Liar, Liar, Pants on Fire!
- Germany Finally Comes Out and Says, “We’re Not Touching Greece” – Well, Sort of…
- The Greece and the Greek Banks Get the Word “First” Etched on the Side of Their Domino
- As I Warned Earlier, Latvian Government Collapses Exacerbating Financial Crisis
- Once You Catch a Few EU Countries “Stretching the Truth”, Why Should You Trust the Rest?
- Lies, Damn Lies, and Sovereign Truths: Why the Euro is Destined to Collapse!
- Ovebanked, Underfunded, and Overly Optimistic: The New Face of Sovereign Europe
- Moody’s Follows Suit Behind Our Analysis and Downgrades 4 Greek Banks
- The EU Has Rescued Greece From the Bond Vigilantes,,, April Fools!!!
- How BoomBustBlog Research Intersects with That of the IMF: Greece in the Spotlight
- Grecian News and its Relevance to My Analysis
- A Summary and Related Thoughts on the IMF’s “Strategies for Fiscal Consolidation in the Post-Crisis
- Euro-Gossip Debunked, Courtesy of Trichet and the IMF!
- Greek Soap Opera Update: Back to the Bailout That Was Never Needed?
- Many Institutions Believe Ireland To Be A Model of Austerity Implementation But the Facts Beg to Differ!
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