All P.I.G.S. fed and ready to fly

Please start another thread on trading versus investing

Yep agree BC. ;)

Guys, this was a thread on the PIIGS. I have enjoyed reading and discerning the benefits and pitfalls of value versus growth investing versus trading, however kindly start another thread. :(

Thanks. :)
 
The details of world economics is beyond me and I read a bit. :) If we limited the thread to "intelligent" debate it would be very short.

At best it would be simple: The "Aus property is different" crowd would ask "Where's Greece?" and the "World economy" crowd would say "Greece is everywhere".

Lock the thread! There is nothing more to say. LOL
 
Gotta tighten those Greek belts

Greeks have a voracious appetite so unlikely to accept dietary changes too well. :rolleyes:

From Business Spectator today..............." At the same time, there is little confidence that Greece will be able to meet the stringent debt reduction task it has been set. Foreign tourists have been cancelling their holiday plans in Greece in the wake of violent anti-austerity protests that have gripped Athens. Hotel reservations are down by an estimated 30 per cent compared with last summer, and dozens of previously booked conferences have been cancelled. This is a heavy blow for a country which derives about 20 per cent of its GDP from the tourism industry.

Some commentators are predicting that the eurozone will be gripped by a fresh crisis in several months when it becomes apparent that Greece’s economy has been crippled by its austerity measures, and that the country’s budget deficit has climbed about its current level of 13.6 per cent. "
Full article here:

http://www.businessspectator.com.au...odoties-pd20100526-5ST2E?OpenDocument&src=kgb




The canary in this mine will unfortunately suffocate soon and shall affect Euro sentiment further and add to our woes both credit wise and confidence wise :(
 
Player said:
The canary in this mine will unfortunately suffocate soon and shall affect Euro sentiment further and add to our woes both credit wise and confidence wise :(
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I think it is a given too......

Loose credit is a thing of the past for the next 10 years imho.....which is going to knock all asset classes, everywhere in the world......except USD and govt bonds, and gold. These would be a sensible hedge for Aussie property at least. Capital preservation is the new game.
 
explosion.jpg
 
Sunfish said:
Couldn't happen outside the secure areas of the international airports in Oz because of our high crime rate.
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I guess it would depend on the location,but i have been reading about this for a while,and i think it will work well,i think it may be harder
being German-Swiss made to rip it up and take it out the front door..
..willair..
 
Player said:
Some commentators are predicting that the eurozone will be gripped by a fresh crisis in several months when it becomes apparent that Greece’s economy has been crippled by its austerity measures, and that the country’s budget deficit has climbed about its current level of 13.6 per cent
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Player

IMO this is an exaggeration.
It's going to be longer than several months to see the austerity measures work because consumption and business activity jumps during the summer months.
You're probably aware that the Greek population jumps significantly during the summer months because of expats and tourists visiting Greece.

I think if they reduced the public sector by privatising as many government areas as possible and sold what they could, they could turn the situation around.

But they'll have to do it now or eventually the situation will get out of control.

I also think that if they let the Euro lose more of its value you will see the European economies take off with more jobs and more revenue which will reduce the budget deficit of the weaker economies
 
Hi ya Bill.....my reply of yesterday afternoon got sucked into some cyber abyss; SS was offline for me for a few hours :cool:

You might be right. I am no economist, however know that the local Greek's standard of living was significantly affected (to the downside) overnight when they joined Euro.

Travel industry is not doing as well as the previous decade. Cheaper for tourists to go to Turkey. Greece was renowned for value to the tourist dollar. Perhaps as Euro devalues a little more then tourism may appeal to other non Europeans.

Not sure where the other porky nations are in their timeline of fiscal obligations, however the sentiment and the further tightening of credit will still cause vibrations globally and, to the dismay of the beach boys, they won't be good. :(
 
Player said:
Saw that on last week's show. Very (seriously) funny :(


It will all be OK with the printing presses running hot :rolleyes: and the interest being capitalised. She'll be right :cool:
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If history has taught me anything is that when Europeans start printing paper money everything will be anything BUT alright :p But I am guessing you are already aware :D .

Who was it that said "history never repeats, but it sure does rhyme"
 
andrew_de_a said:
this might be a silly question but how does a government reign in inflation when it is at those kinds of levels?
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With great difficulty I would guess.

The middle class pay the highest price though. They are the enemy of both the rich and poor so are a popular mark. The poor have nothing anyway and the rich get their capital overseas.

But I don't think hyper-inflation is as contagious as deflation/depression so I doubt that Australia is at risk.
 
andrew_de_a said:
this might be a silly question but how does a government reign in inflation when it is at those kinds of levels?
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1. It stops lying about it monies having any worth when the money is only backed by the promise of paying back it's current debt with future tax receipts.

2. It creates a new currency backed by bonds in real stuff like gold/silver/barley/rye/wheat or whatever that country can produce (steal from it's public) of value that other countries might consider worth forgiving debt for.

3. It uses the old legal tender notes as wallpaper for insulation.

4. It starts the whole ponzi scheme again when everyone forgets how bad the last one was.
 
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