Forum

Wealth Professional forum is the place for positive industry interaction and welcomes your professional and informed opinion.

Notify me of new replies via email
Wealth Professional | 06 Jul 2015, 09:00 AM Agree 0
Advisor are already weighing in on the implications of Greece’s referendum vote Sunday.
  • Dan Moore | 06 Jul 2015, 01:06 PM Agree 0
    This has not got a lot to do with Greece, leaving the Eurozone, it is the risk contagion to the other EU members that is the issue in my mind. The PIIGS less Greece have a lot bigger portions of their GDP to lose. Germany about 4%.
    http://money.cnn.com/2015/01/28/investing/greek-debt-who-has-most-to-lose/

    This will leave a giant hole for taxpayers of the EU to fill to re-capitialize their banks. And now with the new bailin rules, the bank depositors of these countries take the bath. (Note: we have these bailin rules in Canada as well now).
    And you can be sure that if Troika gives in with a re-structuring via debt forgiveness that the rest of the underwater economies with be lining up as well. The problem is much larger than 1.3% of EU GDP. Its about how to handle the fallout, on a massive scale. This "No" vote from Greece is a game changer.

    On top of that the canary in the coalmine is Russia and China, both with interests in Greece with the new Asia Development bank in the wings to provide funding for Greece in exchange for pipelines, bases etc. Tsipras first phone call was Valdimir Putin.
    http://finance.yahoo.com/news/latest-tsipras-calls-putin-wake-121828444.html

    And if we have an official default event this will trigger derivitives (insurance contracts) times 100 the debt, of which there is nothing but thin air to back.

    This is far from over and just the very tip of the ice burg. Now is time to excercise caution.

  • Robert Roby | 06 Jul 2015, 04:13 PM Agree 0
    AS the Chinese say:

    CRISIS=OPPORTUNITY.

    Its time to buy!
Post a reply