The investors take the loss

[Alan S]

http://www.bbc.co.uk/news/world-europe-17109044

<table width="90%" cellspacing=0 cellpadding=0 align=center><tr><td>Quote &raquo;</td></tr><tr><td class="quote">Greece will get loans of more than 130bn euros (£110bn; $170bn) and have about 107bn of its debt written off.

In return, it must slash its debt from 160% to 120.5% of GDP within eight years and accept a permanent EU economic monitoring mission.

The country needs the funds to avoid bankruptcy on 20 March, when maturing loans must be repaid.

"The funds that are coming in are not staying in Greece, are not being invested in Greece, are not here to help the Greeks get out of this crisis," Constantine Michalos, president of the Athens Chamber of Commerce and Industry, told the BBC.

"It's simply to repay the banks, so that they can retain their balance sheets on the profit side."</td></tr></table>

I'm sure banks will line up for Greek loans now.

[NitroZ7]

It almost sounds like many European banks (who hold much of the Greek bonds) are taking a 53% haircut on those bonds with the reduced interest and then getting loans to cover the losses so they don't fail. Not sure if that is what is going on but it seems like another shell game where money is being moved from one column to another to sanitize a bad situation.

Either way when things get bad enough in Greece, there will probably be some type of revolt and the new party will probably just blow off the debt. Seems like they are throwing good money after bad to me but I'm no global economist.

[Alan S]

Exactly. All they're doing is delaying the inevitable. Let them default already and get it over with.

[ChampioNman]

<table width="90%" cellspacing=0 cellpadding=0 align=center><tr><td>Quote, originally posted by NitroZ7 &raquo;</td></tr><tr><td class="quote">It almost sounds like many European banks (who hold much of the Greek bonds) are taking a 53% haircut on those bonds with the reduced interest and then getting loans to cover the losses so they don't fail. Not sure if that is what is going on but it seems like another shell game where money is being moved from one column to another to sanitize a bad situation.

Either way when things get bad enough in Greece, there will probably be some type of revolt and the new party will probably just blow off the debt. Seems like they are throwing good money after bad to me but I'm no global economist.</td></tr></table>

Naw the big wigs at the Euro banks will get jam up comp tickets for the Olympics!

[Bankermike]

Greece is a look into OUR future if we (USA) don't change our ways. People think it can't happen here...So sad.

[taeheel2az]

So you loan this guy 1000 dollars and in a little while he comes back you and says, "You know what ? I think I'll repay you 530 dollars and that's all."

And you say, "What are you, Greek?"