How come Theocrappy and his lapdog, b.sam arent talking about this?
Oh wait, thats right, Theocrapper is posting about car sales in Turkey and b.sam is posting about getting on his imaginary "train leaving the station"
The writing is on the wall boys, and the person doing the writing is The Bank of Greece!!!!!
Still think this POS is gonna hit above $4 anytime soon? $3.00 ? How about down to ONE DOLLAR!!!!!
HAHA tack on another $5000 to the TENS OF THOUSANDS of dollars B.Sam is responsible for losing on NBG!! He got Enrico to buy in and now the poor guy's down $0.30/share or 15% on his investment... all thanks to good ol' B.Sam! Give yourself a pat on the back Sammy :)
They do not say the country is in dire straights at all, only that they look at a drop in GDP this year. This drop due to the austerity measures.
Greece, and EU, are taking a different approach than the U.S. did. Austerity rather than pumping the economy (pumping with new debt). Austerity = lower growth now, potentially higher down the road; Pumping, the reverse.
Now, for NBG: Austerity is preferred to stimulus BECAUSE it the austerity program positively impacts Greek government debt. And that is the NBG problem, not bad loans; if it were bad loans and not government debt, stimulus might be better for the bank.
I've got 30 years of economic forecasting backing up my opinion; what's in your experience wallet?
Jack: Care to compare NBG to RBS That we both were in the pref.I sold out@16 on several issues But still have NBG. They are two different dogs, but NBG is better capitaized with lousier bonds. What do you think if on the 1st of May when NBG is supposed to declare on the NBG.a and they elect to not make div. for the next year. I don't see in the prospectus where it would be considered in default. I believe they will make the div. Thanks
Greece will be Debt Free.. Very soon they will sell that 300 blns. asset for $150 bln.
Greece asset will be plundered for 50% of the value and this is price they pay for lying in Euro land. punishment are in terms payback.
Unfortunately Greek politician have Dud brains, they should immediately start liquidations of these asset so they don't go on fire sale later when the debt grow to 149% of GDP in 2013. Timing is very *IMP*
Govt actions has wiped out the value of their Bank and profitable co. that are trading for 50% of BV.
I might not be surprised if Blackstone get into BOD with their stake or make hostile Bid for their bank and Greek co. that are trading on 50% of BV.
When Brazil defaulted, American Investment. made killing on getting every Brazilian asset. for a song. many hostile bid took their govt asset for throw away price.
Yes, the article is interesting.
What are the essential statements?
Forget your emotions for a minute while you read it.
1) Yes, Greece is still in recession: -2.3% -4%, -3.0% in 2009-2011. Clearly the bottom is past, but not out of woods yet. Consumption is falling. This makes bank’s recovery slow, but the process is ongoing. This what NBG said in their statement too.
2) Greece received EU bailout. Not left in their mess, to drop 50% or more. They got money to bridge over. In return they are required to take steps, to be able to pay back to loans: raise taxes, collect them, cut public service salaries, overhaul labor rules. All very good steps, no free lunch forever. They have to do it anyways.
3) The mesures are unpopular. What to expect? You hoped transport workers to clasp on transit reforms and ticket raises? Unemployment on the raise, so you expect unions to agree with Govt, and not to strike? This is not Germany.
4) They tapped the money market, and got treasury loans for a little less interest rate lately. Is this bad sign? No, a clear message that greek money markets move toward stabilization.
5) Over the weekend, they Govt. agreed with IMF to sell/lend state assets by 2015 in value of 50B Euros. Is this wrong or surprising? If you have to pay down debt, you pay from income or from assets.
In all, the article is clearly a positiv message to investors.
I believe this takes the cake:
>>"We recently traveled to Greece and Iceland in order to better understand the situations in each of these
financial wastelands. We met with current and former government officials as well as large banks and other
systemically important companies and wealthy families. This trip confirmed our quantitative analysis and
ultimately was a lesson in psychology. We met many interesting people in both places but virtually all of them
lived in some state of denial with regard to each country’s finances. As Mark Twain once said, “Denial ain’t just
a river in Egypt.”
In Greece, they currently spend 14% of government revenues on interest alone and are frantically attempting to
get to a primary surplus. This is analogous to a heavily indebted company trying to get to positive EBITDA while
still being cash flow negative due to interest expense. The Greek government’s revenue is a monstrous 40% of
GDP (only 15% in the US) and Greece has raised their VAT tax to 23% from just 17% this past summer. We don't think they can possibly burden their tax‐paying population much more even though the prevalent thought in
Greece is that they need to tax the populace more to make up for those who pay no tax. Greece’s key problems
today are all of the small and medium enterprise (“SME”) loans that are beginning to default. As the
government begins to increase taxes on the Greeks, businesses are moving out of Greece to places like Cyprus,
Romania, and Bulgaria (analogous to Californians, Illinoisans, and New Yorkers moving to Texas) where tax rates
are much lower. Given the fiscal situation in Greece, a restructuring of their debts (i.e. default) seems the most
probable outcome. At nearly 140% sovereign debt to GDP and 3.4x debt to government revenues, Greece put
itself into checkmate long ago."<<
Whoops! NBG to $.40 and that's including the hyperinflation already here. "...UK's core inflation of 3.7% in one month and 10% inflation in food during same period..." It's here folks.
FROM THE ARTICLE: The Bank of Greece said the recession has particularly struck consumption and investment.
"The uncertainty, the increasing tax burden, the fall in demand and the funding difficulties have led investments to a reduction that in 2010 might have surpassed 18 percent," it said.
And in the next sentence they indicate there is improvement taking place in 2011. All the bad news you refer to is why the stock is trading at $2. It isn't pretty, but now is the time to establish positions for improvements in the future.