Thursday, January 28, 2010

Greece continues to deny reality, hurtling toward default

In denial, Greece claims a conspiracy theory.

From Marketwatch:

DAVOS, Switzerland (MarketWatch) -- Greece has been targeted as a potential "weak link" within the euro zone, but remains determined to take painful steps needed to cut its budget deficit and cure a "credibility gap" over the nation's finances, Greek Prime Minister George Papandreou told the annual meeting of the World Economic Forum Thursday. "Often a country is being used as a weak link ... we are being targeted with an ulterior motive or agenda," he said. Greek government bonds were under pressure again Thursday amid worries over the country's budget problems. Papandreou said Greece would not leave the euro zone and that membership in the single currency has benefited the country

And the Chinese have balked at being the dumb money to the rescue:

China shouldn’t buy a “large chunk” of Greek government debt to help rescue the nation because the securities are more risky than U.S. Treasuries, said Yu Yongding, a former adviser to the Chinese central bank.
Greece has a lower debt rating than the U.S. and its statistics have been “sharply” criticized by the European Commission, said Yu, currently a member of the Chinese Academy of Social Sciences, a government-backed research body. The Greek Finance Ministry yesterday “categorically“ denied a report in the Financial Times that it is wooing China to buy as much as 25 billion euros ($35 billion) of its bonds.
“It is unreasonable for an economist to support a diversification away from an unsafe asset class to a much more unsafe asset class,” Yu said in an e-mailed response to questions. “Let European governments and the European Central Bank rescue Greece.”
The cost to insure Greek bonds is soaring again today:

No comments:

Post a Comment