Greece collaspes.

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Originally Posted By: CourierDriver
It appears that Greece is a tourist meca. I am guessing many in here never vacation there, but I have been wrong before, it happens.

It is/was a popular tourist destination, at least for the rest of the Europeans. I did vacation there a couple of times, but it was some 10 years back, not recently.

I hope I don't offend any Greek BITOGers here, but back then, you could very much sense the laid back nature and the sense of entitlement and carelessness among many locals, kind of basking in the sun of all the funds EU was pumping into Greece in the past. Not surprisingly, a country cannot sustain itself like this forever. I'm guessing the tourism has declined in recent years as nobody wants to book their vacation and then be uncertain whether a given hotel/resort/amenities will still be operational when you get there. Even back 10+ years the quality of service was on the low end, but you would let it slide, amazed by the country's natural beauty and all the historic richness Greece has to offer.
 
Not sure Russia really wants them.
They might play like they do, just to frighten the west, but Russia isn't all that great financially either.

Last thing they want is Greece milking them just like they did the EU, then bailing out when the bill comes due.

Much like those guys in college, last one to leave the table gets stuck with the bill.
 
Originally Posted By: LoneRanger
I don't think Russia can afford to bail anyone out, can they?


They aren't going to bail them out; You are missing the point. Greece will discharge the debt and start with a new ally, with a clean slate.
 
Originally Posted By: Doog
We are only $6Trillion away from the same thing

We are 1 phone call from collapse, if China makes a phone call to demand pay back their Trillions Dollar loan, we will be in the same boat as Greece.
 
Are you sure China has a loan to the US which they can call at any time?

I thought they owned government bonds which before maturity they can only sell on the open market to get the US$ that they used to purchase them back.
 
Originally Posted By: Benito
Are you sure China has a loan to the US which they can call at any time?

.


I've heard this is indeed an option the Chinese COULD use if they wanted to, mentioned on CNBC some years ago by a financial expert at one of the big banks.

The reason they won't at least at this point is that it would sabotage their own manufacturing base and also their economic engine. Yes, even China's wealth is built on a house of cards.
 
China don't have a loan. They could stop buying bonds in future though.

They could also start selling what bonds they own on the open market. But if they did that in any significant number, they would start depressing the price and make a loss on it.
 
Why would China want to alienate the United States, and why couldn't the US default on its China debt?
 
Originally Posted By: LoneRanger
I don't think Russia can afford to bail anyone out, can they?

Russia would be interested in placing military bases in Greece.
 
Originally Posted By: zach1900
Why would China want to alienate the United States, and why couldn't the US default on its China debt?


We can't default on our debt because that would effectively end our line of credit with anyone including private US investors.

It would send the country into chaos and the world with it.
 
China can't call anything. The Treasury can on the other hand say all bonds are cancelled anytime they want. China knows that. Probably keeps the world safer because they want the money.
 
How Greece was allowed into the EU is beyond me.

The movie Zorba the Greek paints a stereotype, one that did not form out of a vacuum.
 
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