http://www.sharetrader.co.nz/ sharetrader - online home for sharemarket investors en Thu, 17 May 2012 21:05:19 GMT vBulletin 60 http://www.sharetrader.co.nz/images/misc/rss.png http://www.sharetrader.co.nz/ http://www.sharetrader.co.nz/showthread.php?8797-Grexit&goto=newpost Thu, 17 May 2012 00:22:23 GMT This syllogism of the words 'Greece' and 'exit' to my mind implies a smooth transition out of the Euro for Greece that other nations may not enjoy. But it may be more fateful for Greece and its creditors than is commonly reported in the media. Whichever way it occurs, there is predicted to be some 'pain'.

It is easy to find an understanding for mortgaee holders when the full force of this economic slowdown comes into full force. Clearly, you don't have to worry if your bank falls over. It will be picked up by someone else. Just don't hold too much debt, such that if you loose your job, you can afford the repayments whilst looking for another income.

But for creditors, who would be more usual at sharetrader, it is not so clear how they should respond. While the NZ government seems to favour the rich, it is not clear that they can take care of the full exposure of this recession. People on both sides feel let down. Selling assets now is a short-sighted because the full force of the recession is yet to be felt. On the other hand, large public spending funded by off-shore borrowing is argued to allow those, who would otherwise not, to meaningfully participate in the economy. However, if these ideas don't stimulate NZ economy sufficiently to return govt books to surplus, what will those who are net investors experience? What understanding would benefit them? What is the strategy for an inflationary economy? ]]> Off Market Discussions Fred114 http://www.sharetrader.co.nz/showthread.php?8797-Grexit