Greek Economy could affect travel plans

[nimmoe2]

It seems to me that the Global financial problem is because big banks took too many risks and leant money to people who could not afford to pay it back , including buisness to buisness . Some countries , not many , could deal with the Credit Crunch , others couldn`t because their country was not as rich as others , please don`t knock the Greek workers for fighting with the only weapons they have and withdrawing their labour.

[numbersix]

[quote name='nimmoe2']It seems to me that the Global financial problem is because big banks took too many risks and leant money to people who could not afford to pay it back , including buisness to buisness . Some countries , not many , could deal with the Credit Crunch , others couldn`t because their country was not as rich as others , please don`t knock the Greek workers for fighting with the only weapons they have and withdrawing their labour.[/quote]

The 'global financial problem' is also because everyone (and I mean EVERYONE) was living too high on the hog. Because--it was so darn hard not to. Yes--banks (and many others) took way too much risk. Five car garages, three Hummers in the driveway, investment portfolio values reaching to the moon, retirement at (pick a number under age 65), houses with no money down--all signs that the bubble was about to blow--and it did.

I'm intrigued--what, exactly, are the Greek workers fighting? The Greek government, effectively, is bankrupt. Fully one-quarter of the Greek workforce works for the government. There has to be a reckoning--when there's no more money, then who, exactly, is supposed to pay? Who should pay for a generous Greek national retirement plan that allows workers to retire on full pension at age 61? Perhaps the Germans, who just raised their retirement age to 67, from 65? Maybe the Brits should pay, as their 'contribution' to EU solidarity? (and should your taxes be raised to pay for it?) Raise Greek taxes? Cut Greek government spending?

The analogy to the current situation in Greece is a family (and there are many global 'families' in the same boat, whether it's apparent yet or not, and whether they acknowledge it or not), where spending has outpaced income for far too long, and the bank (or the credit cards, or whoever is funding the spending) refuses to play along any more. Each of us knows how that works. Why don't the politicians? Why--because their politicians! Times are tough--and they're going to get tougher, I'm afraid.

What is clear, however, is that the staus quo (in Greece) cannot continue, because the lenders are disinclined to lend any further. Indeed--who should pay?

I raise the question only as a (reasonably) dispassionate , yet fascinated observer. As I discussed in earlier posts, I am fascinated by the whole situation, and particularly by the more human-nature aspects of it all. It's especially interesting watching the various parties play the blame-game--notice that its always somebody else's fault.

Your just-called election will be fascinating to observe--I'm watching intently!

Kevin

[nordski]

The only positive to this situation, and it's a pathetically small one given the human cost, is that historians/economists will have the bones of this crisis to pick over and to provide some insight into the nature of these events.

The only certainty is that, in such a complex development, an attempt at monocausal explanation will prove inadequate (it was the politicians, the workers, or the banks). And who will be our contemporary Thucydides to provide the necessary insights?

[ShipOFools]

[B]Greek Debt Fears Lift the Dollar[/B]

By [URL="http://www.dailyfinance.com/writers/dan-burrows/"]DAN BURROWS[/URL] Posted 8:38 AM 04/07/10 [URL="http://www.dailyfinance.com/category/economy/"]Economy[/URL]
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The U.S. dollar continued to strengthen early Wednesday as the euro faltered on renewed concerns over the Greek debt crisis. The debt-burdened nation's borrowing costs spiked yesterday following a report that it was trying to exclude International Monetary Fund involvement in a financial aid plan, which Athens later denied.

Still, the bond market's reaction showed how nervous investors remain over the ongoing Greek drama and its implications for the euro. The yield on Greek 10-year government bonds soared more than half a percentage point to 7.2% at one point Tuesday before easing back after the Greek government said it had no plans to demand a renegotiation of the aid plan to exclude the IMF.

That hurt the euro and helped the dollar. The [URL="https://www.theice.com/productguide/ProductDetails.shtml?specId=194"]U.S. Dollar Index[/URL], which measures the greenback against a trade-weighted basked of six major currencies, jumped 0.6% Tuesday, a large move in currency terms, and was trending higher early Wednesday.

A weaker dollar is seen as generally good for U.S. equities, as more than 40% of revenue generated by S&P 500 ($[URL="http://www.dailyfinance.com/quotes/sandp-500-index-rth/%24inx/cmi"]INX[/URL]) companies comes from overseas, but the inverse correlation between stocks and the dollar seems to have run its course, analysts say.

"The global economy is huge, and more and more indicators suggest that it is booming again, so Greece appears increasingly like an outlier," said Ed Yardeni, president of Yardeni Research, in a note to clients Wednesday. "This has to be the longest Greek drama ever performed. It will end eventually without any major tragedy for the U.S. stock market, in my opinion."

See full article from DailyFinance: [URL]http://srph.it/djYBBR[/URL]

[Fblack]

Yet more problems today. They are mad that the government wants to crack down on tax evaders.

"Late Thursday, more than 2,000 people took part in two separate, peaceful demonstrations in central Athens called by left-wing groups against a draft law intended to crack down on widespread tax evasion.

The country's umbrella civil servant union has said it will hold a new general strike later this month."

[url]http://www.businessweek.com/ap/financialnews/D9EV23EG1.htm[/url]

[TLCOhio]

Coming in tomorrow's New York Times will be a story with this headline: "As Greek Bond Rates Soar, the Specter of Bankruptcy Looms". Among the by-lined from London story highlights: "As interest rates on Greek debt spiral upward again, the question facing Europe is no longer whether Athens has the political will to cut spending and raise taxes to curb its gaping budget deficit, but whether Greece will run out of money before it gets the chance to do so. The message from the market could not be clearer: artfully worded communiqués from Brussels will no longer suffice. To avoid bankruptcy, analysts said, Greece needs a bailout from Europe, and fast."

 

Another key part of the analysis says: "To a large extent, this latest bout of Euro-stasis is a function of Germany’s view that it is not the market contagion from the Greek drama that presents the greatest risk to Europe. Instead, Berlin is far more worried about the supposed 'contagion of bad behavior' in other countries like Portugal and Spain that might follow if Greece were to become the beneficiary of a bailout on relatively generous terms. There are unmistakable signs that individuals and corporations are withdrawing funds from Greek banks, although the sums involved do not yet constitute a bank run."

 

The full story can be read at:

http://www.nytimes.com/2010/04/09/business/global/09drachma.html?hp

 

THANKS! Enjoy! Terry in Ohio

[nordski]

Coming in tomorrow's New York Times will be a story with this headline: "As Greek Bond Rates Soar, the Specter of Bankruptcy Looms". Among the by-lined from London story highlights: "As interest rates on Greek debt spiral upward again, the question facing Europe is no longer whether Athens has the political will to cut spending and raise taxes to curb its gaping budget deficit, but whether Greece will run out of money before it gets the chance to do so. The message from the market could not be clearer: artfully worded communiqués from Brussels will no longer suffice. To avoid bankruptcy, analysts said, Greece needs a bailout from Europe, and fast."

 

Another key part of the analysis says: "To a large extent, this latest bout of Euro-stasis is a function of Germany’s view that it is not the market contagion from the Greek drama that presents the greatest risk to Europe. Instead, Berlin is far more worried about the supposed 'contagion of bad behavior' in other countries like Portugal and Spain that might follow if Greece were to become the beneficiary of a bailout on relatively generous terms. There are unmistakable signs that individuals and corporations are withdrawing funds from Greek banks, although the sums involved do not yet constitute a bank run."

 

The full story can be read at:

http://www.nytimes.com/2010/04/09/business/global/09drachma.html?hp

 

THANKS! Enjoy! Terry in Ohio

Thanks for the updates.

 

What an interesting test for the EU and IMF and, more specifically, whether transnational organizations are able to help resolve this crisis.

[TLCOhio]

Thanks for the updates. What an interesting test for the EU and IMF and, more specifically, whether transnational organizations are able to help resolve this crisis.

 

THANKS for the "thanks" and your excellent question about what happens next. Below is the breaking news about the major downgrade of the credit rating for Greece. This will cause some added "ripples" and financial tension. Breaking news from the Wall Street Journal with this headline: "Fitch Downgrades Greece". Here are the story details: "Fitch Ratings cut its rating for Greece to the lowest investment-grade rating and said the outlook remained negative, adding to the woes facing the country. Yields on Greek debt have soared this week as worries have grown about the country's ability to finance its heavy debt load, with some analysts saying the likelihood of the country needing to accept aid from the European Union and International Monetary Fund is growing. The downgrade comes days ahead of an auction that will test investors' willingness to buy some of the country's fastest-maturing debt."

 

Here is an AP story highlight: "The downgrade means that Greek debt remains investment grade — but only just. Another downgrade would make Greece’s debt junk status — an ignominious position for a country using the euro." Here is the full story on this move to downgrade Greece's credit rating:

http://www.nytimes.com/2010/04/10/business/global/10drachma.html?hpw

 

Enjoy! Terry in Ohio

[numbersix]

Yet more problems today. They are mad that the government wants to crack down on tax evaders.

 

"Late Thursday, more than 2,000 people took part in two separate, peaceful demonstrations in central Athens called by left-wing groups against a draft law intended to crack down on widespread tax evasion.

 

 

"Cracking down on tax evaders"?! The gall of some people! What's next--arresting turnstile-jumpers on the Athens Metro? Arresting petty thieves? The charm of the mediterranean countries is being undermined by the minute!:rolleyes:

 

Thanks for the update!

[m steve]

reminds me of when I was planning my honeymoon and my now ex mother in law said she hoped that Castro would be overtrown quickly so we could go to Verdara Beach in Cuba as it was a great vacation spot. :eek:

[rich_cathybrock]

reminds me of when I was planning my honeymoon and my now ex mother in law said she hoped that Castro would be overtrown quickly so we could go to Verdara Beach in Cuba as it was a great vacation spot. :eek:

 

I think you nailed it on the head. This doesn't seem like it's going away any time soon...

[TLCOhio]

There is a key video conference today among Euro government leaders today. Here is the headline from the Associated Press this morning: "Euro finance ministers to meet over Greek aid". The story highlights are: "Finance ministers of the 16 euro nations are to meet in a video conference to discuss the technical details of a financial aid package for Greece. A European official, speaking on condition of anonymity because of the sensitivity of the situation, said also a definite rate for loans at below-market interest will only be agreed after Greece makes a formal request for help. It has not yet done that."

 

Also from the respected Financial Times in London, they had this analysis this morning with this headline: "Greek woes raise eurozone questions". The UK had considered being a part of the euro, but there were questions on what happens with and to countries that were weaker and/or did not play by the rules for financial behavior. A key story highlight was: "Back in 2002, the use of actual euro currency went some way to allaying concerns that the ambitious experiment would work. For most of the time since then, currency markets have treated the euro like an expanded Deutschmark with a tendency to view the differing fortunes of the eurozone members through a filter of German-style fiscal discipline, of which investors approve. Over that period, the single currency rose from $0.90 against the dollar to a peak of almost $1.60 two years ago. Since then however, it has slipped to about $1.35. Some of its decline in the past few months is due to concerns about Greece’s problems and the fear that it could leave, or be forced to leave, the eurozone." This issue is also raised: "Leaving the eurozone is technically feasible. However, any such move, particularly from a position of weakness, is deeply unattractive for the leaving nation and in spite of the market chatter, is not considered a genuine possibility in the case of Greece."

This full story is at:

http://www.ft.com/cms/s/0/e629f8a0-4332-11df-9046-00144feab49a.html

 

THANKS! Enjoy! Terry in Ohio

[TLCOhio]

Per the below New York Times story (from Reuters) that just moved, here is the headline: "Euro-Zone Nations Offer $40 Billion to Greece". The story has these key details: "A financial rescue of the debt-laden Greek economy moved into focus Sunday when the 16 nations that use the euro offered to loan Athens up to €30 billion at rates far below what the debt-laden country is paying now. The interest rate charged on the European contribution would be around 5 percent for a three-year loan — more than the amount charged by the International Monetary Fund. All 16 nations of the euro zone would take part in any rescue, making contributions based on the proportion they pay into the European Central Bank’s capital reserves. Even other nations with financing difficulties — including Portugal, Ireland and Spain — have agreed to take part."

 

What does this mean? The problem is not solved, nor cured, long-term, in Greece or in the other struggling nations of Europe. It's a band-aid and means there is less likelihood of total chaos in the coming months for those with spring and summer travel plans in Greece.

 

You can read the full story at:

http://www.nytimes.com/2010/04/12/business/global/12drachma.html?hp

 

THANKS! Enjoy! Terry in Ohio

[TLCOhio]

Things have not gotten worse with the finances in Greece and Europe during the past week (which has been busy with the Iceland volcano/airport shutdowns). With this headline "Debt crisis a shocking wake-up call for Greeks", the Financial Times gives more detailed background on this situation. From the highly respected The Economist, their headline is "Three years to save the euro. The bail-out for Greece has merely bought some time. Europe’s governments must use it wisely". Their analysis notes: "FOR all her promises to stand firm against a subsidised rescue for Greece, Germany’s Angela Merkel wobbled as soon as financial markets gave off a whiff of serious panic. On April 11th, after spreads on Greek debt had soared and the first signs emerged of a possible run on its banks, euro-area leaders agreed to offer the beleaguered Greek government up to €30 billion ($41 billion) of three-year loans, at an interest rate of 5%. The rescue package has merely bought time—three years, in effect, to contain the adverse consequences of a possible Greek default."

 

You can see the full details from these stories:

http://www.economist.com/opinion/displaystory.cfm?story_id=15908513

http://economictimes.indiatimes.com/news/international-business/Debt-crisis-a-shocking-wake-up-call-for-Greeks/articleshow/5827437.cms

 

THANKS! Enjoy! Terry in Ohio

[cruisemom42]

For the long term, I hope they are able to take a serious look at the problems in Greece and start to address them.

 

For the short term, I am selfishly happy that it looks as if things will be relatively normal by the fall when I will be visiting Athens!

[TLCOhio]

For the long term, I hope they are able to take a serious look at the problems in Greece and start to address them. For the short term, I am selfishly happy that it looks as if things will be relatively normal by the fall when I will be visiting Athens!

 

We'll hope for the best for Cynthia and the other travelers to Greece this spring and summer. BUT, here's the latest updates with some more "bumps on the road". Nothing terrible, just added signs that these Greek and Europe financial problems are not solved. The drop in the euro value is a mixed signal for upcoming Europe travelers. On our last cruise in late July 2008, the euro was around $1.58 and a pound cost nearly two dollars.

 

Here's the latest AP news headline: "Greek debt crisis gets worse as EU revises figures". Here are some story details: "Civil servants staged a 24-hour strike Thursday against austerity measures and expected job cuts by Greece's crisis-plagued government, and the EU's statistics agency said the country's budget was even worse than previously thought. The strike disrupted public services, shut down schools and left state hospitals working with emergency staff. Protesters from a Communist-backed trade union blockaded Athens' main port of Piraeus, disrupting ferry services. About 3,000-4,000 protesters marched through central Athens, carrying banners reading 'tax the rich' and 'Don't take the bread from our table.' Scuffles broke out when about 150 demonstrators challenged police lines near the city's central Syntagma Square, and police responded with tear gas."

 

From the Wall Street Journal this morning was this headline: "Greek 2009 Deficit Was Wider Than Expected". The story included these highlights: "The new uncertainty on Greece's fiscal liabilities rattled the European currency and bond markets, with the euro slumping to $1.3370 from about $1.3400 within minutes of the news. The cost of insuring Greece's sovereign debt against default using credit default swaps hit a fresh high again Thursday, as Greek five-year sovereign CDS rose to 5.5 percentage points for the first time. Eurostat repeated its reservations about the quality of Greek budget figures, highlighting swaps entered into by the government, uncertainties about the size of the surplus on social security funds, and on 'the classification of some public entities.' "

 

From Reuters news services, this breaking story headline: "Euro hits 2-week low vs dollar; Greek deficit weighs" with this highlight: "The euro sank to a two-week low on Thursday against the U.S. dollar, as new budget deficit data on Greece stoked investor worries about that country raising enough funds to meet debt payments."

 

You can see the full stories at:

http://apnews.myway.com/article/20100422/D9F845DO3.html

http://online.wsj.com/article/SB10001424052748703876404575199520197362174.html?mod=WSJ_hps_MIDDLEThirdNews

http://www.reuters.com/article/idUSN2233435720100422?type=usDollarRpt

 

THANKS! Enjoy! Terry in Ohio

[TLCOhio]

Here is the latest this morning on Greece and its souring financial situation. Here's the New York Times headline: "Greece Calls for Activation of Financial Rescue Package".

 

The main details are: "Describing his country’s economy as 'a sinking ship,' the Greek prime minister formally requested an international bailout on Friday, an unprecedented step that will test the bonds of the European Union. In a nationally televised address, Prime Minister George Papandreou said two waves of austerity measures introduced by the government over the past few months had failed to convince the markets that Greece would get its finances under control or be able to avert defaulting on a mountain of debt.".

 

You can get the full story at:

http://www.nytimes.com/2010/04/24/business/global/24drachma.html?hp

 

THANKS! Terry in Ohio

[Fblack]

I suspect more strikes will continue for quite a while.

 

 

"Thu Apr 22 (Reuters) - Thousands of striking Greek civil servants marched Thursday to protest against austerity measures,...

 

More than 10,000 civil servants and students marched to parliament...

 

Nurses, teachers, tax officials and dockers stopped work during the 24-hour strike, which paralyzed public services,..."

 

 

http://www.reuters.com/article/idUSTRE63L58C20100422

[TLCOhio]

I suspect more strikes will continue for quite a while. "Thu Apr 22 (Reuters) - Thousands of striking Greek civil servants marched Thursday to protest against austerity measures,...

More than 10,000 civil servants and students marched to parliament...

Nurses, teachers, tax officials and dockers stopped work during the 24-hour strike, which paralyzed public services,..."

 

Sadly, more strikes are coming. The euro is up a little today at $1.337.

 

Posted within the last hour or so in the Wall Street Journal is this headline: "Greek Unions Vow to Strike Over Aid Appeal". The story details include: "A few short hours after Greece submitted its formal request to activate the joint bailout mechanism promised by the European Union and the International Monetary Fund, the country's unions threatened more strikes and the opposition party launched populist tirades against the government. 'It's an unfortunate development,' said Stathis Anestis, the spokesman for the private-sector umbrella union GSEE. 'But it's like a worker recently told me, if you are ready to die and its slow and painful, maybe even shock therapy is not a bad option for the chance to live.' Mr. Anestis warned of protests, saying workers would strike if the conditions attached to the bailout impose cuts on workers' salaries or pensions. The hard-line Greek Communist Party didn't mince its words, and details or no details, once again called on its supporters and all of society to stand up to what it called the 'plutocracy' and rise up to resist what it sees as a coming storm of measures that will hurt the working class."

 

From Business Week/Bloomberg News: Here is the headline: "Greek Bailout May Fail to Ease Investor Crisis Angst". These are the story highlights: "Greece’s request for a European Union-led $60 billion bailout may fail to ease investor concerns about the debt-ridden nation’s ability to end its fiscal crisis. European policy makers have so far only spelled out the aid that Greece would receive over the next year, sparking concerns about how the country will finance itself beyond 2011. While Greece has pledged to lower its budget deficit below the EU’s 3 percent limit by 2012, Goldman Sachs Group Inc. says the country’s challenge is so great the nation may cut or delay payments to bond investors. With national debt of almost 300 billion euros and investors demanding more than double what they charge Germany for its 10-year bonds, Greece faces a fiscal mess that threatens to spread to Spain and Portugal, forcing the EU to set up a standby aid facility. Greek Prime Minister George Papandreou’s appeal today came after he described the country’s borrowing costs as unsustainable."

 

From Reuters newswire mid-day, here is this headline: "Ash cloud, Greek debt underline EU problems". Their details: "Greece's debt mountain and a volcanic eruption in Iceland have compounded the European Union's problems in establishing itself as an important player on the world stage. Both crises highlighted the cumbersome process of securing agreement among 27 countries which have a domestic audience to please and often opt for a knee-jerk defence of national interests."

 

The full stories are at:

http://online.wsj.com/article/SB10001424052748703709804575201970442424964.html?mod=WSJ_hps_MIDDLETopStories

http://www.businessweek.com/news/2010-04-23/greek-bailout-may-fail-to-ease-investor-crisis-angst-update1-.html

http://uk.reuters.com/article/idUKTRE63M1T720100423

 

THANKS! Terry in Ohio

[Hlitner]

We do not see a way-out of this mess for Greece. The country has embraced socialism and labor unions and has simply run out of money. Unlike the USA, where we can simply print more money and devalue our currency, Greece has no real control over their currency since they are one small part of the Euro. Unfortunately for Europe, the Greece situation exposes the weakness of the Euro scheme where no country can control their own currency. We would expect to see similar problems in other Euro-based countries such as Portugal and perhaps even Spain. Unless the other Euro-based countries continue to bail-out these countries the Euro will be doomed to failure. The parallels to the current situation in the US are striking. We continue to spend money we do not have and our debt burden (as a percentage of GDP) continues to grow. Eventually the USA will not be able to replay its debt and will have difficulties attracting purchasers of our debt. Unlike Greece, the US would be able to simply devalue its currency putting us in the same category as countries like Venezuala. Tis a sad sad situation.

 

Hank

[TLCOhio]

We do not see a way-out of this mess for Greece. The country has embraced socialism and labor unions and has simply run out of money. Unlike the USA, where we can simply print more money and devalue our currency, Greece has no real control over their currency since they are one small part of the Euro. Unfortunately for Europe, the Greece situation exposes the weakness of the Euro scheme where no country can control their own currency. We would expect to see similar problems in other Euro-based countries such as Portugal and perhaps even Spain. Unless the other Euro-based countries continue to bail-out these countries the Euro will be doomed to failure. The parallels to the current situation in the US are striking. We continue to spend money we do not have and our debt burden (as a percentage of GDP) continues to grow. Eventually the USA will not be able to replay its debt and will have difficulties attracting purchasers of our debt. Unlike Greece, the US would be able to simply devalue its currency putting us in the same category as countries like Venezuala. Tis a sad sad situation. Hank

 

Hank is very smart and raises lots of important questions that will be facing other countries, including ours. Here's the latest news story highlights. With this headline, "Greece races for rescue, some fear not enough". Reuters has these key details: "Finance leaders scrambled to secure aid for debt-stricken Greece on Saturday and Canada cautioned that some European countries feared the 45 billion euros ($60 billion) under consideration was not enough. Greece's woes dampened optimism over a faster-than-expected economic recovery that otherwise might have been cause for congratulation at G20 and IMF meetings this weekend. It focused attention instead on poor public finances across the advanced economies, a problem IMF Managing Director Dominique Strauss-Kahn listed among the top two threats to the global recovery." At this high-level meeting there were "growing fears the Greek turmoil could lead to a broader crisis with state debt and must be cut off before it infects other euro-zone economies like Portugal and Spain."

 

Today from Reuters is this headline: "Germany, France signal hard line with Greece". The story highlights: "The debt-saddled country has announced billions of euros in austerity measures, including tax hikes and public sector wage cuts, but must now agree additional steps to satisfy the EU and IMF, and ensure the aid flows. German Finance Minister Wolfgang Schaeuble warned Greece that a tough restructuring of its economy was 'unavoidable and an absolute prerequisite' if Berlin and the EU were to approve the aid Greece has requested."

 

From Business Week/Bloomberg, here is this headline: "Finance Chiefs Demand Quick Greek Aid Deal at Washington Talks" with these highlights: "Even with the first bailout of a euro-area member nearing, investors are signaling concern about the country’s ability to end its fiscal crisis. A rebound in Greek bonds after the government’s request for support on April 23 fizzled out with the yield on the two-year note rising to 10.23 percent having fallen to 9.63 percent. Greece’s travails helped weaken European stocks for a second week with the country’s banks including National Bank of Greece SA and EFG Eurobank Ergasias sinking as Moody’s Investors Service cut its credit rating. Greek unions and opposition political parties have already slammed Prime Minister George Papandreou for turning to the lender, criticized in the past by Asian and Latin American nations for demanding too much austerity. ADEDY, the Athens- based federation representing the more than 500,000 Greek civil servants who have had wage cuts this year, called the move a 'barbaric attack' and planned a rally for April 27."

 

You can read the full stories at:

http://news.yahoo.com/s/nm/20100424/ts_nm/us_imf_6

http://www.reuters.com/article/idUSTRE63O0QW20100425?feedType=RSS&feedName=topNews

http://www.businessweek.com/news/2010-04-25/finance-chiefs-demand-quick-greek-aid-deal-at-washington-talks.html

 

THANKS! Terry in Ohio

[TLCOhio]

From this morning's Wall Street Journal electronic version, here is their lead headline "Cost of Insuring Greek Debt Soars". Written by WSJ reporters in London, their key info is: "Hopes that Greece's formal request for international financial aid might help stabilize the financial markets are proving short-lived Monday, with the cost of insuring Greek debt against default soared to a new record. The euro also took a dive, after briefly rebounding from a 12-month low of $1.32 against the dollar Friday after Greece officially requested the financial aid promised last month by euro-zone finance ministers and the International Monetary Fund."

 

Another key highlight was: "Meanwhile, after a brief pullback at the outset of trading, the cost of insuring Greek government bonds against default rocketed to a fresh record, as credit default swaps for five-year Greek sovereign debt jumped to 7.13 percentage points. That means investors now judge Greece to be at greater risk of default than Pakistan and Ukraine. Only Argentina and Venezuela command higher CDS levels."

 

There is also this headline from CBNC: "Staggering Ineptitude Led to Greece's Crisis". Among the points in this analysis: "All indications are that the Germans remain very nervous about handing any money at all. Indeed, Chancellor Angela Merkel and her team have fought such a development every step of the way. The level of political ineptitude has been staggering. Very few of those involved in resolving the situation in Greece seem to have grasped the magnitude of the situation. This has turned a problem into a crisis."

 

The full stories are at:

http://online.wsj.com/article/SB10001424052748703465204575207662667002760.html?mod=WSJ_hps_MIDDLETopStories

http://www.cnbc.com/id/36776154

 

THANKS! Terry in Ohio

[Fblack]

I am not sure I would plan a cruise that starts or ends in Athens until things get resolved. More strikes today have shut down the port of Pireaus and more are scheduled for later this week.

 

Mon, 26 Apr 2010: Athens - Dockworkers blocked Greece's largest port of Pireaus on Monday in protest against reforms meant to boost cruise tourism as the government raced against the clock for international aid to arrive in time to avert the eurozone's first default....The new measures, which include lifting cabotage rules to allow non EU-flagged vessels to moor at Greek ports without hiring Greek crews, prompted Monday's port strike. The striking dockworkers at Pireaus prevented the more than 1,500 passengers and crew on the Panama-flagged cruise-ship Zenith, from embarking or disembarking. They are further threatened to keep the ship from sailing for its scheduled destination to Croatia later in the evening.

 

On Tuesday, Athens public transport workers will hold rolling strikes while the main civil servants' union, ADEDY, is planning a protest rally in the evening.

 

http://www.earthtimes.org/articles/show/320595,greek-dockworkers-strike-as-government-negotiates-aid--summary.html

[Hlitner]

I am not sure I would plan a cruise that starts or ends in Athens until things get resolved. More strikes today have shut down the port of Pireaus and more are scheduled for later this week.

 

Mon, 26 Apr 2010: Athens - Dockworkers blocked Greece's largest port of Pireaus on Monday in protest against reforms meant to boost cruise tourism as the government raced against the clock for international aid to arrive in time to avert the eurozone's first default....The new measures, which include lifting cabotage rules to allow non EU-flagged vessels to moor at Greek ports without hiring Greek crews, prompted Monday's port strike. The striking dockworkers at Pireaus prevented the more than 1,500 passengers and crew on the Panama-flagged cruise-ship Zenith, from embarking or disembarking. They are further threatened to keep the ship from sailing for its scheduled destination to Croatia later in the evening.

 

On Tuesday, Athens public transport workers will hold rolling strikes while the main civil servants' union, ADEDY, is planning a protest rally in the evening.

 

http://www.earthtimes.org/articles/show/320595,greek-dockworkers-strike-as-government-negotiates-aid--summary.html

 

It is hard to see how the left in Greece could be more self-destructive. There is nothing new with the labor issues in Greece and fortunately, for most cruise lines, they do not typically use Pireaus as a home port. Several years ago a few cruise lines did use Pireuas as an embarkation port only to find themselves cancelling cruises because of labor disruptions caused by port workers and other leftest labor unions. The cruise lines moved their operations to other ports (we think Barcelona was the big winner) which cost these Greek labor unions some jobs. We fear that things are going to get a lot worse in Greece before the unions realize that things must change!

 

Hank

[cruisemom42]

I am not sure I would plan a cruise that starts or ends in Athens until things get resolved. More strikes today have shut down the port of Pireaus and more are scheduled for later this week.

 

Mon, 26 Apr 2010: Athens - Dockworkers blocked Greece's largest port of Pireaus on Monday in protest against reforms meant to boost cruise tourism as the government raced against the clock for international aid to arrive in time to avert the eurozone's first default....The new measures, which include lifting cabotage rules to allow non EU-flagged vessels to moor at Greek ports without hiring Greek crews, prompted Monday's port strike. The striking dockworkers at Pireaus prevented the more than 1,500 passengers and crew on the Panama-flagged cruise-ship Zenith, from embarking or disembarking. They are further threatened to keep the ship from sailing for its scheduled destination to Croatia later in the evening.

 

On Tuesday, Athens public transport workers will hold rolling strikes while the main civil servants' union, ADEDY, is planning a protest rally in the evening.

 

http://www.earthtimes.org/articles/show/320595,greek-dockworkers-strike-as-government-negotiates-aid--summary.html

 

Great -- my September cruise starts and ends in Athens/Piraeus, and my November cruise ends there....:eek: