What Will Happen When Greece Defaults?

The EUR/USD is the most generally traded currency pair, with 27% of trades in the forex market being made on this pair. Accordingly, the issue of many traders currently is ‘where is the euro headed?’ and, ‘what will occur when Greece defaults?’

The present situation

Greece’s situation could be worse after strict austerity measures forced by the EU-IMF bailout, its economy shrank by 7.3% in Q2 of 2011, surpassing the most pessimistic forecasts of both the European Union and the IMF.

In the meantime, Greek bond yields have risen to record levels, with on three-year-bond, which was trading at 20% in June, now trading at 172%. Bonds scheduled to be paid back in March 2012 are being priced at around about half their official worth. And prices for Greek credit default swaps (CDSs), which offer investors a hedge against default, have increased more than 200% since the start of August, rising above Four thousand basis points.

Adding to the issue is the possibility that Greece will not be given the subsequent EUR8bn tranche of help, as German finance minister Wolfgang Schauble has accused them of not abiding by the conditions of the aid agreement. This puts Greece in the hard position where disproportionate budget cuts mean it cannot stimulate its economy so it may expand out of debt, yet not enforcing these measures means it does not have ready money to pay state wages and pensions in October.

[youtube]http://www.youtube.com/watch?v=LTZWu1ipEmo[/youtube]

Hence, Greece will default, the only question is when.

What will happen when Greece defaults?

Once Greece defaults, the governing body will nationalise each bank in the country, and then forbid any withdrawals. To prevent riots among Greek depositors, the govt will then impose a curfew, and could even declare martial law.

Greece will then leave the single currency and re-denominate its obligations into a new currency. Against the euro, this currency will devalue by around 50%, effectively defaulting on more than half of all Greek euro-denominated debts.

Several French and German banks will make losses large enough to no longer satisfy capital adequacy requirements, while the European Central Bank will go bankrupt due to its high exposure to both Greek administrative and Greek banking sector debt. The French and German governments are then sure to meet to choose whether to recapitalise the ECB or to permit it to print money to restore its solvency. They will then recapitalise their own banks and likely refuse all future bailouts.

And this scenario doesn’t consider the reaction of Ireland, Portugal, Spain and Italy the other struggling economies in the eurozone.

Nonetheless a Greek default won’t be all bad. Of the economies that have defaulted since 1999 have not all performed as well since their defaults, the average post-default GDP rate of growth improved by about Three percent.

How will this impact the euro?

As far as the euro is concerned, a default may be beneficial. As it would allow Greece to have a new, separate, currency that can be devalued, Greece is more certain to improve its competitiveness with favourable exchange rates. And, although there would be an instinctive sell-off of the euro and volatility over a bunch of months, the industrial performance of the eurozone as a whole would be boosted, especially if it begins to expel the weaker members. This would result in a potential strong climb in the single currency.

Summary

Greece will default, or leave the eurozone, at some point. The Greek economy has reached the point at which it can not recover, and Germany’s patience with the periphery nations and the ECB is wearing thin. What remains to be seen is whether or not this is to be an ‘orderly’ default, the voluntary debt exchange agreed in July where holders of Greek debt suffer 21% losses on bonds that mature before 2020, or a ‘disorderly’ default, where Greece walks away from its liabilities without consultation.

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Remember that CFDs and currency exchange are leveraged products and may result in losses that exceed your 1st deposit. CFD trading may not be appropriate for everyone, so please make sure that you understand completely the risks concerned.Author: Wan Shao

School stampede in China kills eight, injures dozens more

Tuesday, December 8, 2009

State media reported earlier today that a stampede in a school in China has killed at least eight people and injured an additional 26.

The accident occurred at 21:10 local time at the Yucai Middle School, a privately-run institution in city of Xiangxiang, located in the Hunan Province. Reports say that several students were leaving their studies when one fell down a staircase, causing others to lose their balance and tumble down as well.

Those hurt in the incident were treated at three hospitals in the town, and eight other students were being observed by medical personnel despite appearing not to have been hurt.

Chinese officials are investigating the incident and have been questioning the city educational bureau and local school authorities, according to the Xinhua news agency.

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US Senate finance committee to vote on health care bill

Friday, October 9, 2009

US Senate Majority Leader Harry Reid has said that the Senate Finance Committee will vote on a sweeping health care reform bill next Tuesday. US President Barack Obama has made clear that extending health insurance coverage to as many Americans as possible is his top domestic priority.

Republican lawmakers, however, are still overwhelmingly opposed to the bill, saying it is too expensive and would expand the role of government in people’s health care.

Obama and his fellow Democrats in the Senate received some good news late Wednesday from the non-partisan Congressional Budget Office, which put the total cost of the Senate Finance Committee’s health care bill at $829 billion over the next decade, below Obama’s stated goal of $900 billion. The budget watchdog organization also said the health care bill would help reduce the federal budget deficit over the next ten years.

Harry Reid said he believed health care reform was moving forward. “And so today we stand closer than ever to fulfilling that fundamental promise, one for which we have fought for more than 60 years,” he said.

Senate Minority Leader Mitch McConnell, however said that the cost estimate was “irrelevant”, because the final bill that will actually emerge from both houses of Congress is likely to look very different and cost a lot more. “What matters is that the final bill will cost about a trillion dollars, vastly expand the role of government in people’s health care decisions, increase premiums and limit choice,” McConnell said.

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McConnell said Republicans favor a step by step approach to health care reform, focusing on prevention and wellness programs and dealing with the high costs of malpractice insurance doctors have to pay due to fears of excessive lawsuits.

Under the Finance Committee’s bill, US residents would be required to get health insurance or face a penalty, and insurance companies would face tough new regulations. For example, insurance companies could no longer reject coverage for people due to pre-existing conditions.

The Senate Finance Committee is likely to pass the bill, which will then have to be merged with one passed by the Senate health committee before it goes to the full Senate floor for debate.

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Animal Invaders In Which To Contact Animal Control Services About Removal

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Wild animals can be very interesting in their natural habitat. However, this is not the case when they invade the home. At this point, they become a danger to the family. Attempts to capture these types of animals can result in injuries to the person attempting to capture them. If these animals are spotted, contact animal control right away.

Raccoons appear to be cute and cuddly creatures. Despite their cuteness, they are also equipped with claws and teeth. They will defend themselves very vigorously if trapped into a corner. Their claws and teeth can carry diseases such as rabies that can be passed onto humans. For safety, contact animal control services if there are signs indicating a raccoon has gotten into the house. This animal can get very aggressive very quickly.

Many people have a fear of snakes. This fear is based in reality. Snakes can be an extremely dangerous animal. Often, snakes that get too big for their habitat are released into the wild. Even though a lot of snakes are considered harmless, it can be difficult to determine its qualities without studying them. Since all snakes can bite, it is best to have a professional remove them once they are discovered.

Squirrels are a frequent home invader. They are often on the hunt for adequate storage places in which to build up winter supplies. If the home has access from the roof line, the squirrels can get in. Once they take root in the home, they deposit food and can chew on wiring. The food will attract other pests. Damaged wiring will put the home at risk for a fire. Like other animals, squirrels can bite and scratch. They also carry various diseases that can infect humans. They can also be notoriously hard to catch. Contact animal control services for removal if these animals find a way into the home.

Animal invasions are all too common. While interacting with the animals from a safe distance will keep everyone safe, this is not the case if they get into the home. If there are signs of animal invaders, check out Pestcontrolmd.com for more information on getting rid of them safely.

Australia/2006

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Colleges offering admission to displaced New Orleans students/OH-WY

See the discussion page for instructions on adding schools to this list and for an alphabetically arranged listing of schools.

Due to the damage by Hurricane Katrina and subsequent flooding, a number of colleges and universities in the New Orleans metropolitan area will not be able to hold classes for the fall 2005 semester. It is estimated that 75,000 to 100,000 students have been displaced. [1]. In response, institutions across the United States and Canada are offering late registration for displaced students so that their academic progress is not unduly delayed. Some are offering free or reduced admission to displaced students. At some universities, especially state universities, this offer is limited to residents of the area.

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Forex Trading Review Know How The Forex Traders Make Money Online With The Automated Forex Trading Systems!

Forex Trading Review- Know How the Forex Traders Make Money Online With the Automated Forex Trading Systems!

by

Steave Garbo

A forex trading review is one effective way to discover the best forex trading system that will actually help increase your earnings from the Forex market. Similarly, a Forex broker review is the way to find the top forex brokers. Right now the forex market is on a high demand. This is mainly because the market experiences a high daily turnover of over $3 trillion per day. Therefore, when you take into account online trading, you must highly consider the forex trading review programs with the high returns.

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You may be wondering how do the forex traders turn out to make more money with the help of the powerful and effective forex robot. Its a fact that most of the forex traders utilize automated system robot nowadays. The major reason behind this is the use of the automated forex trading system. It is mainly because they have a great turn over the manual trading. Therefore, how do you choose from the best automated forex software? Given below are top three secrets that will help you to choose the best forex robot. First and foremost, go to any search engine either Yahoo, or Bing, or Google, or AOL. After that type in forex trading review within quotes and then click search. The search results you will find will be review of the forex programs. Select the top three results and review all the forex programs. The next option for identifying or recognizing the best forex programs will be to check out the different forex related forums. Most of these forex trading forums offer an avenue to the real programs that are recognized and used all over the world. To find forums, you need to go to the search engine and then type the keyword + forum and then click the search. A number of search results will appear which relates to your forte and then choose the first results. This way you will gain more information to your services or products. Next you can go to Alexa, and then type in the name of the product on the URL box and click the search option. You will find a total analysis of the chosen product indicating product popularity, target market, keyword search, testimonials and traffic level as well. All of the above are 3 most useful and powerful ways to identify the best foreign trading program. As a matter of matter these are the techniques that most forex traders use. The currency traders make use of a useful Forex systems that can help double their earning results and the forex robots generally functions with most forex brokers. Overall, before you decide to purchase forex software, you must be sure to conduct a comprehensive Forex trading review. Reviews will definitely assist you to choose the best forex software. If you desire to trade forex, then you must consider using a Forex robot with high winning rate.

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“Woofstock” dog festival in Toronto, Ontario, Canada

Tuesday, June 12, 2007

North America’s largest outdoor dog festival came back to Toronto last weekend for its fifth year. It ran from the 9th of June to the 10th of June at Toronto’s historical St. Lawrence Market. A Wikinews reporter was there on Sunday to report on some of the events that happened on the last day.

The “Woofstock” dog festival attracted as many as 140,000 people with their dogs. The festival had tons of accessories, sold under tents, to buy for dogs; food, toys, designer clothes, and more. About 400 vendors and exhibitors were there to promote their products, which also gave private dog companies or groups a chance to show their new products. The local SPCA and some animal rescues were under tents answering questions from visitors. While walking, all visitors could see the CN Tower and other very tall buildings.

One of the local TV stations, Citytv, was there. They hosted a live event at the show which was broadcast on TV. People came up on the stage and asked questions regarding their dogs and the host and co-host answered them.

A man, who called himself the “Chalk Master”, drew two pictures on pavement with chalk. He did it for free but donations were welcome. One was a picture of a girl’s head beside a dog’s head, and another with a wolf.

“Hello Humans. I’ve been invited here to provide your eyeball(s), with some pretty colours. I don’t get paid as I work this weekend strictly for tips… so, if you like what you see please make a DONATION. If you don’t like it simply reach into the pocket of the person next to you and give me their money. CHALK MASTER.”

A contest called “Canada’s top dog” had its own tent with a professional photographer taking pictures of dogs behind a white screen; the winning photo is to be published on the cover of “Puppy and dog basics” magazine.

Large “Gourmet” dog bones were also served from a cart and table.

Next year’s festival is expected to be bigger and better with even more attractions.

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Indian aviation sector hit by financial trouble; domestic traffic at five-year low

Saturday, October 18, 2008

The Indian aviation sector looks set to shrink amid financial turmoil, with the nation’s air carriers in schemes to try and ride out the problems and domestic air traffic at a five year low.

Air traffic has fallen by 19% in September, the fourth month in a row of negative growth. The news comes as a joint result of the current financial crisis and high jet fuel prices, with Indian airlines in debt to the tune of Rs1,800 crore after surpassing their credit limits with oil companies, who are themselves making losses due to government controls on the price of jet fuel.

Kingfisher Red – originally known as Air Deccan, India’s first budget carrier, until Kingfisher Airlines bought the company out – suffered the biggest drop in passenger numbers at 20% of their load factor. Flag carrier Air India is running at 53% of capacity after a 10% fall, and the average for airlines is now 55% as opposed to 65% this time last year.

Kingfisher Airlines has decided to enter an alliance with Jet Airlines that will see them collectively control half the Indian aviation market. Both airlines are in debt over fuel payments with Jet owing Rs850 crore while Kingfisher refused to disclose the amount they needed to pay. The money is owed mainly to the Indian Oil Corporation, with the rest owed to the Hindustan Petroleum Corporation and the Bharat Petroleum Corporation. 45% of costs for Indian carriers is fuel, which is 70% more expensive than abroad due to multiple taxes.

Air India’s head Raghu Menon expressed concern about what the Kingfisher-Jet alliance meant for his own airline. “We were competing with both these airlines separately. Now we’ll be competing with them perhaps as one entity. It’ll be a challenge,” he said.

Kingfisher have cancelled an order for three A340 aircraft from European airframer Airbus. Airbus executive John Leahy said that Airbus had discussed the issue with Kingfisher before the choice was made and that this was the only cancellation from India. He also maintains that India will be an important area for Airbus, with the firm predicting Indian aviation growth will be at 9.7% compared to a global rate of 5.4%. Airbus predict that 1,000 new aircraft will increase the Indian fleet fivefold by 2026. Airbus have also welcomed the partnership between Jet and Kingfisher, saying it will help consolidate the carriers.

Airlines are cutting capacity to reduce costs, with around 20% gone already. Average flight movements are down to 8,000 a week compared to 10,500 in the period from April to June. The aviation industry in India is expected to post a collective loss of US$2 billion.

One executive at Boeing, Dinesh Keskar , predicted the downfall to be brief. “The current downturn in the sector is temporary and may not prolong for more than 6 to 9 months,” he said. Airlines, however, feel that the risk is very much immediate; Jet and Kingfisher are requesting a government bailout package worth Rs 40.7 billion. They are currently losing a combined US$1.3 billion.

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