The massive mess that we seen on the market today is due to concerns over the economic strength of europe. Euro is sliding and it touched a nine-year low against US dollar. Euro will slide further.
Greece was in debt crisis from 2009. They have trouble in paying back the debt. On 2 May 2010, the Eurozone countries, European Central Bank (ECB) and International Monetary Fund (IMF), later nicknamed as the Troika, responded by launching a €110 billion bailout loan to rescue Greece from sovereign default and cover its financial needs throughout May 2010 until June 2013, conditional on implementation of austerity measures, structural reforms and privatization of government assets. A year later, a worsened recession along with a delayed implementation by the Greek government of the agreed conditions in the bailout programme, revealed the need for Greece to receive a second bailout worth €130 billion (now also including a bank recapitalization package worth €48bn), while all private creditors holding Greek government bonds were required at the same time to sign a deal accepting extended maturities, lower interest rates, and a 53.5% face value loss.
Again the same parties provided third round of funding to greece. However as like all the times greece did not full fill the austerity measures provided to them.
Greece recorded a Government Debt to GDP of 174.90 percent of the country's Gross Domestic Product in 2013. India recorded a Government Debt to GDP of 67.72 percent of the country's Gross Domestic Product in 2013
It is also revealed that greece had set up a deal with goldman sachs to hide its debt. Italy also in the radar of such a deal. Portugal and Ireland may follow greece.
If Greece does not full fill debt obligations,the debt owning banks from Germany and France as well as IMF will be in slight trouble. A debt default from Greece will cause higher intrest rate loans to remaining europian countries. Europian Central Bank is thinking serious about a quantitative easing which will even cause euro to slide further.
We may face some reduced capital inflows from abroad. However domestic economy is safe and keep buying stocks in this dip. SBI is a buy at current rate. Accumulate private and good PSU banks. They are going to fetch you good returns in the coming quarter.
Greece was in debt crisis from 2009. They have trouble in paying back the debt. On 2 May 2010, the Eurozone countries, European Central Bank (ECB) and International Monetary Fund (IMF), later nicknamed as the Troika, responded by launching a €110 billion bailout loan to rescue Greece from sovereign default and cover its financial needs throughout May 2010 until June 2013, conditional on implementation of austerity measures, structural reforms and privatization of government assets. A year later, a worsened recession along with a delayed implementation by the Greek government of the agreed conditions in the bailout programme, revealed the need for Greece to receive a second bailout worth €130 billion (now also including a bank recapitalization package worth €48bn), while all private creditors holding Greek government bonds were required at the same time to sign a deal accepting extended maturities, lower interest rates, and a 53.5% face value loss.Again the same parties provided third round of funding to greece. However as like all the times greece did not full fill the austerity measures provided to them.
Greece recorded a Government Debt to GDP of 174.90 percent of the country's Gross Domestic Product in 2013. India recorded a Government Debt to GDP of 67.72 percent of the country's Gross Domestic Product in 2013
It is also revealed that greece had set up a deal with goldman sachs to hide its debt. Italy also in the radar of such a deal. Portugal and Ireland may follow greece.
If Greece does not full fill debt obligations,the debt owning banks from Germany and France as well as IMF will be in slight trouble. A debt default from Greece will cause higher intrest rate loans to remaining europian countries. Europian Central Bank is thinking serious about a quantitative easing which will even cause euro to slide further.
We may face some reduced capital inflows from abroad. However domestic economy is safe and keep buying stocks in this dip. SBI is a buy at current rate. Accumulate private and good PSU banks. They are going to fetch you good returns in the coming quarter.
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