PeteMorris Posted May 17, 2012 Share Posted May 17, 2012 Now don't get me wrong, I'm not sticking up for Greece, Spain or Italy when it comes to their financial woes. BUT...It occurs to me, that these countries are having problems paying their debt. So what do the banks do? Raise their interest rates. Making the problem even worse! It happened to me on a much smaller scale obviously, where come the thin end of the month the bank have bounced a direct debit, charged me some sort of stupid fee for the privelege, which made my account even more overdrawn and then charged stupid fees because I've gone overdrawn. Isn't this like kicking a bloke when he's down? Note: The post title: I seem to have 'missed the first word "Aren't" If a mod could alter it, it would make better sense! Link to comment Share on other sites More sharing options...
truman Posted May 17, 2012 Share Posted May 17, 2012 Now don't get me wrong, I'm not sticking up for Greece, Spain or Italy when it comes to their financial woes. BUT...It occurs to me, that these countries are having problems paying their debt. So what do the banks do? Raise their interest rates. Making the problem even worse! It happened to me on a much smaller scale obviously, where come the thin end of the month the bank have bounced a direct debit, charged me some sort of stupid fee for the privelege, which made my account even more overdrawn and then charged stupid fees because I've gone overdrawn. Isn't this like kicking a bloke when he's down? Note: The post title: I seem to have 'missed the first word "Aren't" If a mod could alter it, it would make better sense! Do you reckon it's fair that the rest of the countries (customers) who do live within their means finance the ones who don't..? Greece has had a poor record of tax collection..combine this with early,very generous pensions and it appears that the pigeons have come home to roost.. Link to comment Share on other sites More sharing options...
Uptowngirl Posted May 17, 2012 Share Posted May 17, 2012 Now don't get me wrong, I'm not sticking up for Greece, Spain or Italy when it comes to their financial woes. BUT...It occurs to me, that these countries are having problems paying their debt. So what do the banks do? Raise their interest rates. Making the problem even worse! It happened to me on a much smaller scale obviously, where come the thin end of the month the bank have bounced a direct debit, charged me some sort of stupid fee for the privelege, which made my account even more overdrawn and then charged stupid fees because I've gone overdrawn. Isn't this like kicking a bloke when he's down? Note: The post title: I seem to have 'missed the first word "Aren't" If a mod could alter it, it would make better sense! Have you ever wondered why Wonga get away with charging 3000% interest. Its because they lend it to people who probably won't pay it back. Greece is paing 20 odd % because everyone knows that they will default and the lender will lose his wonga. But I'm sure if you feel sorry for these countries they will accept a loan from you at a better rate of interest than you can obtain anywhere in the UK. Just buy Greek/Italian/Spanish bonds. Simple. But you won't get your money back. Do you reckon it's fair that the rest of the countries (customers) who do live within their means finance the ones who don't..? Greece has had a poor record of tax collection..combine this with early,very generous pensions and it appears that the pigeons have come home to roost.. Baring in mind that the banks have written off around 60% of the money they lent to Greece I think the interest rates are stupidly low, because everyone knows that a loan to Greece is like flushing your loot down the toilet. Link to comment Share on other sites More sharing options...
PeteMorris Posted May 17, 2012 Author Share Posted May 17, 2012 Do you reckon it's fair that the rest of the countries (customers) who do live within their means finance the ones who don't..? Greece has had a poor record of tax collection..combine this with early,very generous pensions and it appears that the pigeons have come home to roost.. I'm not for one minute condoning the actions of Greece or anyone else. I think I said that in my original post. But it's still like kicking someone when they're down! It seems pretty claer that at some point Greece 'will' default on their loan, but if the interest wasn't so crippling, they might have a glimmer of hope in sorting it out. I know if I had lent someone a fiver and I wanted 3 quid interest on it. I would rather 'just' get my fiver back than nothing at all! Link to comment Share on other sites More sharing options...
truman Posted May 17, 2012 Share Posted May 17, 2012 I'm not for one minute condoning the actions of Greece or anyone else. I think I said that in my original post. But it's still like kicking someone when they're down! It seems pretty claer that at some point Greece 'will' default on their loan, but if the interest wasn't so crippling, they might have a glimmer of hope in sorting it out. I know if I had lent someone a fiver and I wanted 3 quid interest on it. I would rather 'just' get my fiver back than nothing at all! There's a good chance you wouldn't get your fiver back with Greece..they've borrowed cash that they can't repay so you lend them more? How will they repay that? Link to comment Share on other sites More sharing options...
gluedtopc Posted May 17, 2012 Share Posted May 17, 2012 Saw on the news last night that the Greeks are drawing Euros out as fast as the can-looks like they'll be having their devalued drachmas back pretty soon. Link to comment Share on other sites More sharing options...
PeteMorris Posted May 17, 2012 Author Share Posted May 17, 2012 There's a good chance you wouldn't get your fiver back with Greece..they've borrowed cash that they can't repay so you lend them more? How will they repay that? Clearly they won't, or rather can't. Link to comment Share on other sites More sharing options...
truman Posted May 17, 2012 Share Posted May 17, 2012 Clearly they won't, or rather can't. So would you lend to them? Link to comment Share on other sites More sharing options...
PeteMorris Posted May 17, 2012 Author Share Posted May 17, 2012 So would you lend to them? No I wouldn't. But it's all acedemic. I foresaw these problems when the Euro first came about (yes I know you'll say it's easy in hindsight). Every country in the Euro has different cultures, religions, different ways of working, different everything. What made the powers that be think that they would all handle their financial affairs the same? It was never going to work. Now, the misgivings that I had have come home to roost. But the basic question I posed on the original post remains. What's the point of kicking someone when they're down? Link to comment Share on other sites More sharing options...
HeadingNorth Posted May 17, 2012 Share Posted May 17, 2012 But the basic question I posed on the original post remains. What's the point of kicking someone when they're down? I think you're misunderstanding the situation. The loans that already exist, don't have their interest rates changed; it is money that Greece is trying to raise now, on the bonds markets, for which they're having to offer ever higher interest rates to try and persuade someone to lend it to them. It's equivalent to you having made a right royal mess of your overdraft, and then going to your bank and asking for a personal loan. If you get one at all, you're going to have to pay over the odds for the interest rate - probably by going to somewhere like Wonga because the bank won't touch you. At the national level, people who bought Greek bonds at, say, two per cent in the past, are now worried that they won't get their money back; that makes them very unlikely to buy new bonds unless the interest rate is significantly higher, to offset part of their risk. Just as you have the option of not taking out that personal loan until you've sorted your finances out, so Greece could decline to sell any bonds if it so choose. Link to comment Share on other sites More sharing options...
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