Impending Greek Bankruptcy

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Impending Greek Bankruptcy

The disorderly political situation in Greece very likely gives us an impending Greek bankruptcy. This is important because it will mean that Greece will leave the European Union. All of the herculean effort of the last two to three years in the Euro Zone has been to forestall exactly this possibility. The concern is that the impending Greek bankruptcy will lead to a Spanish bankruptcy followed by bankruptcies in Portugal, Ireland, and Italy. The European Union could come apart at the seams. All of this sounds very dramatic but what does the impending Greek bankruptcy have to do with trading foreign currencies? The resulting Euro Zone economic contraction will likely send waves across the currency trading world.

Now or Never

After the painfully negotiated bailout of the Greek financial system, Greece is supposed to institute fiscal austerity measures. Greek voters may have effectively blocked that from happening by voting for a range of candidates across the political spectrum who may well decide that their political future is tied to pleasing voters and not the International Monetary Fund, European Central Bank, and the solvent members of the EU. The problem for Greece and reason for an impending Greek bankruptcy is that the recent agreed to debt bailout of $171 billion is being paid in installments and the next installment of roughly $30 billion is due next month. The payments are contingent on Greece following through with its promises to institute austerity measures. It is a certainty that while voters in Greece don’t want the pain of tough austerity measures that voters in Germany will throw out Chancellor Merkel if Germany continues to agree to bail out a Greece that does not abide by its promises to participate in Euro Zone fiscal austerity.

A Run on the Bank and on the Euro

A large portion of debt owed by Greece is owed to its own banks. While voters in Greece may have voted for a political situation that gives us an impending Greek bankruptcy those with bank deposits in Euros in Greece will likely head over to their local bank and withdraw their Euro funds. When everyone does this it is a run on the bank and when Greek and foreign depositors finish their run on Greek banks those with money in banks in Spain, Portugal, Ireland, Italy, France, and other countries may well do the same. After all, if the Euro will be a stronger currency than that of any departing country such as Spain, Portugal, Ireland, or Italy why not put Euros under your mattress? Better yet why not trade those Euros for dollars and buy short term US treasuries? Thus, while the Forex response to Greek bailout success was a rise in the Euro impending Greek bankruptcy is sending it down. The opportunity here for the Forex trader is that the next weeks and months will probably see a volatile Euro and volatile Forex markets in general.

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Impending Greek Bankruptcy

  1. 1. Impending Greek Bankruptcy
  2. 2. To see a complete version of this presentationand to obtain our free EBook follow this link:http://portal.sliderocket.com/BLOUC/Impending-Greek-BankruptcyRead the Forex Conspiracy Report for insightsinto trading foreign currencies. Get your copyathttp://portal.sliderocket.com/BLOUC/Impending-Greek-Bankruptcy
  3. 3. The disorderly political situation inGreece very likely gives us an impendingGreek bankruptcy.This is important because it will meanthat Greece will leave the EuropeanUnion. www.ForexConspiracyReport.com
  4. 4. All of the herculean effort of the last twoto three years in the Euro Zone has been toforestall exactly this possibility. www.ForexConspiracyReport.com
  5. 5. The concern is that the impending Greekbankruptcy will lead to a Spanishbankruptcy followed by bankruptcies inPortugal, Ireland, and Italy. www.ForexConspiracyReport.com
  6. 6. The European Union could come apart atthe seams.All of this sounds very dramatic but whatdoes the impending Greek bankruptcyhave to do with trading foreign currencies? www.ForexConspiracyReport.com
  7. 7. The resulting Euro Zone economiccontraction will likely send waves acrossthe currency trading world. www.ForexConspiracyReport.com
  8. 8. Now or Neverwww.ForexConspiracyReport.com
  9. 9. After the painfully negotiated bailout ofthe Greek financial system, Greece issupposed to institute fiscal austeritymeasures. www.ForexConspiracyReport.com
  10. 10. Greek voters may have effectively blockedthat from happening by voting for a rangeof candidates across the political spectrumwho may well decide that their politicalfuture is tied to pleasing voters and not theInternational Monetary Fund, EuropeanCentral Bank, and the solvent members ofthe EU. www.ForexConspiracyReport.com
  11. 11. The problem for Greece and reason for animpending Greek bankruptcy is that therecent agreed to debt bailout of $171 billionis being paid in installments and the nextinstallment of roughly $30 billion is duenext month. www.ForexConspiracyReport.com
  12. 12. The payments are contingent on Greecefollowing through with its promises toinstitute austerity measures. www.ForexConspiracyReport.com
  13. 13. It is a certainty that while voters in Greecedon’t want the pain of tough austeritymeasures that voters in Germany willthrow out Chancellor Merkel if Germanycontinues to agree to bail out a Greece thatdoes not abide by its promises toparticipate in Euro Zone fiscal austerity. www.ForexConspiracyReport.com
  14. 14. A Run on the Bank and on the Euro www.ForexConspiracyReport.com
  15. 15. A large portion of debt owed by Greece isowed to its own banks.While voters in Greece may have voted for apolitical situation that gives us animpending Greek bankruptcy those withbank deposits in Euros in Greece will likelyhead over to their local bank and withdrawtheir Euro funds. www.ForexConspiracyReport.com
  16. 16. When everyone does this it is a run on thebank and when Greek and foreigndepositors finish their run on Greek banksthose with money in banks in Spain,Portugal, Ireland, Italy, France, and othercountries may well do the same. www.ForexConspiracyReport.com
  17. 17. After all, if the Euro will be a strongercurrency than that of any departingcountry such asSpain, Portugal, Ireland, or Italy why notput Euros under your mattress? www.ForexConspiracyReport.com
  18. 18. Better yet why not trade those Euros fordollars and buy short term UStreasuries? Thus, while the Forexresponse to Greek bailout success was arise in the Euro impending Greekbankruptcy is sending it down. www.ForexConspiracyReport.com
  19. 19. The opportunity here for the Forex traderis that the next weeks and months willprobably see a volatile Euro and volatileForex markets in general. www.ForexConspiracyReport.com
  20. 20. The situation will, however, resolve itselffor good or ill. The Forex trader whosuccessfully follows market sentiment maybe able to profit handsomely in the shortterm. www.ForexConspiracyReport.com
  21. 21. The Forex trader who can divine theultimate outcome of the impending Greekbankruptcy may see even better profits. Asalways don’t trade unless you fullyunderstand what you are doing. www.ForexConspiracyReport.com
  22. 22. For more insights and useful informationregarding the Forex markets and foreigncurrency trading, visit.
  23. 23. www.ForexConspiracyReport.com

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