Ok let us start with the discussion about the financial crisis.

Do you think it is right to cut the liabilities from Greek ?

What do you think about the financial crisis and the euro crisis, do you afraid about the crisis ?

Yes , as there is no way now . It is right to cut the liabilities.As it will not only effect greek. but also effect country like Germany, France and the PIIGS countries.

Financial crisis may result to fall of Banks. Jobless and even Europe can go into a recession.

Till now situation is under some control. European nations have to find a solid way to come out it.

I confess I didn't agree that much at the very beginning of the year and even the semestre, as I though it was possible for Greece to get by somehow without Germany's bailout. But it isn't sustainable anymore, Greece is going downhill and it needs to be saved right now before it sinks totally. Indeed, the referendum suggested by Mr Papandreou took everyone aback, as it delays the reaction of other countries to support them.
I wonder if this decision would endanger Greece's membership in the European Union...

Nicole, as you live in Germany, I'd like to know whether this aid has an incidence in your country - of course, besides balancing in a very partial way the overall condition of the European countries.

And while Greece has blasted, the world's also waiting for the upcoming events in countries such as Spain, Italy or Ireland, where the deb's overcome any rational thought, as well.
Germany's ready to 'help', I really wonder if the whole European continent can do it on their own. Do you think Europe may rely on other countries or even continents? - Some are suggesting Arab countries could help save the Eurozone. I'd like to understand how that's possible. I also wonder - and forgive my ignorance - if there's anything expected in exchange from Greece in the future. My fear is that, while it will smooth the environment for a while, there will be double trouble later: Greece won't solve their problems all of a sudden, and those who were eager to help these countries might find themselves in trouble afterwards!

Last but not least, I want to share with you this video by the BBC, I call it the Eurocrisis for Dummies, for those who don't get the idea of the crisis.

I think condoning a partial part of the debt is a lot better than skulling how to solve the debt, after all this is all a matter of control. No one helps for free. Basically they're selling their own brothers when accepting the bailout. The master bank has endless money, but they're just scaring every country and the citizens just to keep control on these organisations. So I disagree with the financial policy and every solution given because, on the very top, there's just greed. I am sure the EU's going to start looking for me.

Hello @ all,

I din't agree with the current financial policy because I think it's not the right way. That we help other countries from the EU it's ok but not on this way. Germany give Greece a guarantee about more than 220 billion. But what will Germany and the other states from the EU do when they have to pay there guarantee because Greek need's more Money or breakdown. I think when Germany or the other states have to pay there Guarantee they need help next. It's not that I think we don't have to help other Countries but I think it's to fail way. I think it's better to let they go orderly bankruptcy and help them than to start new with EU.

In the main topic at the News from Germany about more than 4 or 5 Months is only the financal crisis. So many people in Germany are afraid of this because all are thinking about what will come.

Well, I've got to say I couldn't agree more with you. This kind of help doesn't ensure that Greece is going to overcome its crisis and, on the contrary, it may endanger other nations, Germany included. My concern is, doesn't Germany have proper needs to solve on their own? I bet once the total help's offered to Greece, it will be a matter of a year or a bit more before they declare themselves in emergency once again.
I think Germany might face a tough finalcial situation in some years after deciding to stop working on nuclear energy progressively. This change doesn't take place at the trop of the hat, but the investment is significant!
Isn't France supposed to 'help' Greece, as well? Are they supposed to help every country just to avoid the euro-denial contagion, just when they're becoming likely to suffer, as well?

I agree with GrumpyElf: By condoning they can help a lot. But the greedy corporations and international banks prefer a whole organisation to fall before they give up. And there's no need to say that interest rates are going up again due to Greece uncertainty. There must be a reason for them to have thought of a referendum, there must be something behind!

every time there are default threats, the European Central Bank (ECB), helps out with a bailout. Since the start of the financial crisis it (the ECB) has bought, outright, something like $80 billion of Greek and Irish and Portuguese government bonds, and lent another $450 billion or so to various European governments and European banks, accepting virtually any collateral, including Greek government bonds. Of the 126 countries with rated debt, Greece now ranked 126th: the Greeks were officially regarded as the least likely people on the planet to repay their debts
The situation is pretty messy because it is interlinked. Take the case of Germany, which keeps contributing the ECB rescue fund. 'The German government gives money to the rescue fund so that it can give money to the Irish government so that the Irish government can give money to Irish banks so the Irish banks can repay their loans to the German banks,' In case of Greece, a lot of German and French banks which have lent money will be in trouble if Greece defaults.

If allow them to go bankrupt they will as bankrupt default. Then who will pay those.Real trouble for germany and france.

So they are worry and trying to bail out Greece.

Do you know what those Greece is doing ? You will astonished to hear . A job which now pays 55,000 euros in Germany, pays 70,000 euros in Greece, even with the fact that Germany is a more productive nation. As Lewis writes, 'To get around pay restraints in the calendar year the Greek government simply paid employees a 13th and even 14th monthly salary -- months that didn't exist.There is more to come. The Greek government categorises certain jobs as arduous. These jobs have a retirement age of 55 for men and 50 for women. 'As this is also the moment when the state begins to shovel out generous pensions, more than 600 Greek professions somehow managed to get themselves classified as arduous: hairdressers, radio announcers, musicians ' write Mauldin and Tepper in Endgame."and it means more and more borrowing by the government, when they already have so much debt.

That's too much, Somu!!!
And, despite these scandalous numbers, Greek people don't want to give up, do they? They're protesting because they don't want their wage to be reduced, they don't want their pensions to be lower, and they don't want to accept the austerity measurements. Let me ask you, Somu... Is lifestyle that expensive in Greece or are they earning more than they realy should for their expenses?

SOMU wrote:The situation is pretty messy because it is interlinked. Take the case of Germany, which keeps contributing the ECB rescue fund. 'The German government gives money to the rescue fund so that it can give money to the Irish government so that the Irish government can give money to Irish banks so the Irish banks can repay their loans to the German banks,' In case of Greece, a lot of German and French banks which have lent money will be in trouble if Greece defaults.

If so, this is a neverending debt cycle, and this bailout will be nonsense, I can see. Because it's a debt that will be charged later, and countries like Greece will never be able to pay either a quarter of this debt. So what's the deal?

Yes if situation don't change it will be like that way never ending debit. So Germany now against any more bail out as they are not willing to follow any guidelines. Now the final bell from Germany and France accept terms or exit from euro.

G20 also told no aid to Europe now.

Now Take the case of Spain. Spain had the biggest housing bubble in the world. "To put things in perspective, Spain now has as many unsold homes as the United States, even though the US is six times bigger. Most of these new homes were financed with capital from abroad," write Mauldin and Tepper. Spain's real estate debt comes to around 50 per cent of its GDP

There are more such cases. Take the case of Hungary. In 2004, interest rates in Hungary were at 12.5 per cent. This meant borrowing money was extremely expensive. Inn neighboring Austria, the banks had started to offer loans and mortgages to their customers in Swiss francs. Rates in Austria, at 2 per cent, may have been lower than in Hungary, but in Switzerland, they were even lower at around 0.5 per cent. Why would Austrians borrow at 2 per cent when they could just as easily borrow at 0.5% per cent?' write Mauldin and Tepper

The same question applied to Hungarians, except that the difference was much bigger. So the Austrian banks, many of which also had branches in Hungary began to engage in the same business there, lending to Hungarian borrowers
Of course, now Austrian banks have lent 140 per cent of their GDP to countries like Hungary. Even though Hungary has put in austerity measures and is trying to repay, if there was a blow up, the Austrian government wouldn't be able to save the banks and ECB might have to step in

Similarly, Swedish banks have also lent a lot of money to Estonia, Lithuania and Latvia, countries which aspire to have Euro as their currency some day,
But can't countries get out of the Euro and go back to their own currencies and then print money to repay their credThe thing is that the mechanics of leaving the euro are very messy. Also going back to your own currency might lead to other problems for a country. When countries go back to their own currencies to print it and repay debt, citizens will be concerned

So leaving the Euro would be a lot of trouble for countrues like Greece, woudln't it?
I also wonder if this kind of situation wouldn't bring about mid-term problems to countries like France, Austria, Sweden or Germany, which keep on lending money to countries which cannot sustain themselves and, instead, continue going further and further into debt. Is it convenient for them to dream of adopting the Euro one day? I think it's not sensible at all!

Yes , Anita because when a country prints currency in huge quantities, the currency will not remain of any real value. So the citizens of the country will try and move their money to either other assets like gold, or will continue using the euro,
This will lead to bank runs, with all the people queuing up at banks at the same time demanding their money back. This, of course, will lead to a lot of banks collapsing,
Mauldin and Tepper elaborate on this using the example of Italy. 'Households and firms, anticipating that domestic deposits would be re-denominated into the lira (Italy's currency before it started using the euro), which would then lose value against the euro, would shift their deposits to other euro-area banks. A system-wide bank run would follow. Investors anticipating that their claims on the Italian government would be re-denominated into lira would shift into claims on other euro-area governments, leading to a bond market crisis. . . this would be the mother of all financial crises.

Relationships are easy to get into, but very difficult to get out of

SOMU wrote: Yes , Anita because when a country prints currency in huge quantities, the currency will not remain of any real value. So the citizens of the country will try and move their money to either other assets like gold, or will continue using the euro.

That's the famous Cash Your Gold, isn't it? I've read that in countries like USA, this system's becoming popular: while people give their gold away for money, there's a moment in which their currency won't be as valuable as it used to be, and they'll regret exchanging their gold. This might be very likely to happen in Europe if they rush and change their belongings mightn't it?

Now the main idea's to avoid the currency crisis as well as the bank crisis. I wonder, however, if the current financial policy will eally help. There might a moment in the cycle previously mentioned in which the currency will blast no matter how much they've received in the aids, and the confidence in investment will reduce drastically, leading to the high interest rates they've always wondered about. It hasn't happened yet because the world's waiting for Germany's reaction and Greece's next steps. But it smells like fear, and the enxt year will be concerning for these and more countries.

Now the political-economical crisis has moved to Italy, where they are asking for Berlusconi's head. I think it is etter because this guy is spending all the Italian euros in prostitutes and parties. He has not made right decisions, he has to go.

People are already takihg their money out of their banks, so it means the bank crisis they have been trying to avoind is taking place. Pity!