Spain going bankrupt?

[Jool]

From Thinkspain on 16 January and based on Merrill Lynch information apparently - what happens when a country goes bankrupt? What does it really mean?


Spain verging on bankruptcy
By: [email protected] , Friday, January 16, 2009

It now appears that the financial noose around Spain is getting tighter and tighter, as on the one hand the market is now reacting to the latest ratings downturn from Standard and Poor, and on the other, indicators appear set to declare the country bankrupt later this year, due in no small part to the Credit Default Swap procedure yesterday registering an increase on 9 points to arrive at 118.5.

However, this is still lower than the 130 it hit last December [the figures mean that for a price of 100 supposes that to cover bonds of ten million euros, 100,000 should be paid].

According to Merrill Lynch, the 106 figure means that there is an 8% probability of not paying, but over the last few days this has increased to a 9% probability.

By comparison Germany has a 4% rating, Greece an 18%, Ireland a 15% and Italy 14%, with rumours rising that possibly one country of the euro zone is considering pulling out of the single currency.

[julian]

There is an explanation in this article about what happens if a country goes "bankrupt"

http://www.dailymail.co.uk/debate/colum ... krupt.html

[Jool]

I wish I hadn´t asked now!!

[julian]

what we need to know is what happens if the world goes bankrupt !!

[Lavanda]

For Goodness Sake ... what does it all MEAN????

We've just had a long after-dinner conversation about who will be better off in a year's time ... the person with a field full of gold or the person with a field full of potatoes? It was decided that the person with the Kalashnikov would be the better off. Wonder if I can get one on e-bay???

[julian]

"For Goodness Sake ... what does it all MEAN????"
it means..............we´re doooomed !!

[Jool]

Who is our Dr Who - the one that saves the entire planet from doom.........

Obama? Georgie Porgie?

[Jool]

Well this puts it all in perspective

http://dingo.care2.com/cards/flash/5409/galaxy.swf

[pete_l]

what we need to know is what happens if the world goes bankrupt !!

The chinese (for they're the ones with all the money, as we've spent all ours on their cheap goods for the past 50 years) will buy us all up at bargain rates. Better start learning Cantonese now

[frog]

expats song

http://uk.youtube.com/watch?v=O1mCQKuvzCM

[hillybilly]

http://www.telegraph.co.uk/finance/fina ... ating.html

[patchdog]

Wow, the banks have been telling fibs about their level of debt. We could be bankrupt. The UK I mean.

[alaninspain]

Jool : They have a picture of my wife fly ing past from right to left. How does she collect royalties?

[Chrissie]

How cruel Alan I take it she doesn't read this or are you just a masochist