Germany Could Lose €80 Billion if Greece Goes Bankrupt

Are you starting to see who has the most to lose in the Eurozone crisis? If so, you see why Greece might not go. If Greek can’t pay, the German banks cannot survive. Germany is also exposed to $72 trillion in derivatives whereas the nation’s GDP is roughly $2.7 trillion, to put it in perspective. The stakes are high and Greece might have the upper hand after all.

 

Head of Bundestag Committee on European Union Affairs predicts that Germany could lose billions of euros if Greece goes bankrupt.

Athens may not be able to return €80 billion of economic aid that it received from Germany in case of bankruptcy, Deutsche Welle wrote.

‘Unprecedented’ $80 Billion Pulled From Bond Funds

A record amount of money poured out of exchange-traded and mutual bond funds in June, according to a fresh report by TrimTabs, nearly double the amount pulled out of bond funds at the height of the financial crisis in October 2008.

Investor fears over the scaling back of the U.S. Federal Reserve’s bond purchasing program has seen the yield on 10-year Treasurys rise sharply to 2.5 percent as $80 billion left bond funds in June, according to the research.

“The herd is scrambling for the exit this month as bond yields back up across the board and central bankers hint that they might provide less monetary stimulus in the future,” TrimTabs CEO David Santschi said in a research note on Sunday. “We estimate that bond mutual funds have lost $70.8 billion in June through Thursday, June 27, while bond exchange-traded funds have lost $9.0 billion.”

Trillions of dollars worth of oil found in Australian outback

With the direction radical environmentalism is taking the Western world, if not mothballed, any prospective oil is more likely to go to China than to domestic markets that would normally relieve internal economic constraints.

The discovery in central Australia was reported by Linc Energy to the stock exchange and was based on two consultants reports, though it is not yet known how commercially viable it will be to access the oil.