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Fitch: Greece Will Default, Will Be Orderly

From an unfazed Reuters:

Fitch Says Greece to Default, Believes Will Be Orderly

Tuesday, 17 Jan 2012

Rating agency Fitch said on Tuesday that Greece would default on its debt, although it said that such a default was likely to take place in an orderly manner.

"It is going to happen. Greece is insolvent so it will default," Edward Parker, Managing Director for Fitch’s Sovereign and Supranational Group in Europe, the Middle East and Africa told Reuters on the sidelines of a conference in the Swedish capital. "So in that sense it shouldn’t be a surprise to anyone."

The Fitch comments come after Moritz Kraemer, head of Standard & Poor’s rating agency’s European sovereign ratings unit, said on Monday Greece would default shortly on its debt obligations.

Parker said that Fitch believed that even a voluntary agreement by private investors to take a haircut on Greek debt would constitute a default.

"We have said for a long time that we don’t think this PSI is the way to go and we would treat it as a default. It clearly is a default, however they try to spin it," he said.

So even creditors losing half of their money will not help.

Parker said the worst result would would be a disorderly default.

"That, would be, for us, the really damaging situation, but one which we are certainly not expecting to happen because, clearly, in a rational situation you would think Greek politicians and European policy makers would ensure that it doesn’t happen."

Fortunately, we know that the Greek politicians will never let things get chaotic.

This article was posted by Steve on Wednesday, January 18th, 2012. Comments are currently closed.

5 Responses to “Fitch: Greece Will Default, Will Be Orderly”

  1. TerryAnne says:

    “Rating agency Fitch said on Tuesday that Greece would default on its debt, although it said that such a default was likely to take place in an orderly manner.”

    This makes absolutely no sense to me. So, they’re not going to pay their bills, but they’ll be contrite about it when they make the announcement?

  2. untrainable says:

    In a rational situation? Can ANYONE tell me exactly what about the Greek debt situation is rational?
    And we can count on the Greek politicians to prevent a “disorderly” default? Yeah, because they did such a good job keeping order during the austerity phase of this incremental lie. The picture in my mind is Greek politicians represented by Kevin Bacon at the end of Animal House. Standing on the street, holding up their hands, screaming at the top of their lungs that “ALL IS WELL” as they are trampled by the angry mob.

    Thank you sir, may we have another. SPAIN!. Thank you sir may we have another. FRANCE! Thank you sir may we have another… ad nauseum. As the world’s monetary system collapses under the weight of so much vapor-cash, we salute Greece and their orderly default.

  3. proreason says:

    Anybody notice that there were no market convulsions about this?

    Isn’t it intersting that Soros, Goldman Sachs and their partners in crime aren’t jumping up to take advantage of a situation that one might ordinarilly think could be the initial step in the greatest economic crisis of all time. After all, it’s just potentially the sovereign debt of 20% or so of the global economy, with an acknowledged side risk of the re-emergence of German nationalism, something that hasn’t worked out all that well once or twice in the past. Yet the waters yesterday and today are not only placid, markets are actually going UP. Amazing.

    But in 2008, the failure of one obscure private business (Lehman Bros) was the trigger event of a cataclysmic world economic crisis that convulsed all major markets around the globe. That time, the stake was about 10 trillion in mortgage loans, maybe 1/10th of which were genuinely at risk. No sovereign countries at risk. No immediate risk of armed conflicts. No riots. No dissolution of the European Union. No rise of German nationalism. Just money…and not nearly as much money at risk as in the European debt non-crisis.

    I guess the boy king has soothed the angry tides after all.

    Or maybe something else is going on.

    • TerryAnne says:

      I could have sworn Soros already did his damage for Greece (meaning he helped set this whole debacle off). Now that he’s made his mark, so to speak, he doesn’t have to do anything else with them.

  4. Mithrandir says:

    1912~2012. 100 year anniversary of ‘orderly’ disasters.
    First Class is notified, so they can ‘orderly’ transfer their assets (themselves) to safety . Then the filthy steerage classes can panic, trample each other, and fight over the crumbs. I wonder if the exact date of the fall of Greece will be the same as the RMS Titanic: 15th April 1912 2:20 a.m.?

    As I said before, it was buying time so that all the rich and connected people will have an ORDERLY transfer of all their assets to safe accounts. We don’t want to cause any alarm or a run on the banks.

    Good News: Your suffering will come to an end!
    Bad News: You are going to be killed.
    Good News: It will be orderly.

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