Wall Street Journal: Bank of England Warns Greece Threatens Financial Stability
Greece’s debt crisis could trigger a financial market selloff that could ripple through the global economy, the U.K.’s central bank warns
LONDON—The Bank of England said Wednesday the outlook for financial stability in the U.K. has deteriorated in recent days as the crisis in Greece intensifies, underscoring how the Mediterranean nation’s debt troubles are reverberating outside the eurozone.
Presenting the BOE’s twice-yearly Financial Stability Report, the central bank’s governor Mark Carney said the risks associated with Greece and its failure so far to reach a deal with its international creditors have grown acute, and threaten to trigger a selloff in financial markets that could ripple through to the wider global economy.
More News On The Bank Of England Issuing A Warning That Greece May Impact The Global Economy
BOE Sees Acute Greek Risks, Finance Stability Threatened -- Bloomberg
Greek crisis means Britain's economic outlook has 'worsened' says Bank of England as Osborne 'prepares for the worst' -- Daily Mail
Bank of England warns of risks to UK over Greek crisis -- Financial Times
Greek debt crisis a threat to UK financial system – Bank of England -- RT
Greece poses risk to UK financial system, says Bank of England -- The Guardian
Bank Of England Warns Greece "Threatens To Trigger Market Selloff That Could Ripple Through The Global Economy" -- Zero Hedge
WNU Editor: I guess Bank of England governor Mark Carney does not agree with President Obama's claim yesterday that the crisis in Greece will not significantly impact the U.S. economy .... Obama: Greece crisis no 'major shock' to US economy (The Guardian). Who to believe .... England's top banker whose job is to protect Britain's currency .... or a politician in the White House? I have never met President Obama, but I have met Mark Carney when he was Governor of the Bank of Canada .... my money is on the banker telling the truth.
I don't see how Greece is big enough economically to impact the world economy. The English banker is likely looking out for the Bank of England. As such, it may impact English bankers negatively and they may be fear mongering to try and get the taxpayers to support a bailout.
ReplyDeleteEven if he is right, better to write off Greece's debt now, cut off all credit, and take the hit now rather than try to patch things up and things be worse later on. Countries are really just like individuals but on a bigger scale. when an individual finds themselves in to much debt and they realize it, the first thing to do is STOP BORROWING MONEY!!. If necessary, the next step is to cut spending as well which means certain things will need to be sacrificed. If this does not work, sell off certain assets. If this still does not work, negotiate with creditors perhaps leading to chapter 7 or chapter 11 bankruptcy (at least in the US bankruptcy code this the terminology used.)
In summary, this should not adversely affect America unless the institutional investors and the "to big to fail" banks decide to hold us hostage to try and get their bailout for Greece.