EU finance ministers decided as expected on a bail-out package for Greece.
The package consists of an anticipated 30-45 billion Euro subsidized loan at around 5 percent interest.
While official bond rates at market prices already hiked far above 7 percent and would have caused the country to default on its next debt roll-over, this will help to manage the transition.
The distortion of free market pricing however becomes a costly move for European citizens.
German contributors for example are expected to hand in 8 billion Euros.
On a per person rate this are 100 Euros of which each Greek citizen will receive around 400 Euros.
Of course there are no direct transactions between citizens.
So Europeans do not need to worry about how they should open their pockets and handing over the cash.
There are certainly some institutions and political leaders ready to handle the transfer of the G-subsidy for a considerable management fee.
The list of vulnerable real estate assumes an ever greater proportions.
U.
S.
banks facing a dramatic loss of value.
Even German banks that have invested in real estate are affected.
The reason: In the U.
S.
lose enormously since the financial crisis, commercial real estate in value.
Upon the failure of the tenant or insolvent will decrease the revenues for the corresponding Real estate.
High rents and sales prices can be achieved not because of the numerous vacancies.
The rents for office buildings, factories and homes are under pressure.
In many cases up to 50% of the rents paid to achieve 2007th The funds of the investment banks have been addressed very speculative, affects particularly problematic.
Real estate were up to 90% or more purchased on credit.
The bubble began to rising rents and Property prices.
Now bringing vacancy rates and falling rents, the refinancing of loans in difficulty.
Many banks are forced by the failure of payments to high depreciation.
What extent the losses will assume the long term remains to be seen, but a U.
S.
congressional committee believes that almost half of the loans, 700 billion dollars have been bad.
This means the borrower owes more money than his property is worth.
More negative headlines are not ruled out the consequences for the economy would be fatal: 40 percent of U.
S.
banks could threaten the bankruptcy that could cause actual return new turbulence in financial markets and a new economic crisis.
Lena Schmidt Marketing Manger
The package consists of an anticipated 30-45 billion Euro subsidized loan at around 5 percent interest.
While official bond rates at market prices already hiked far above 7 percent and would have caused the country to default on its next debt roll-over, this will help to manage the transition.
The distortion of free market pricing however becomes a costly move for European citizens.
German contributors for example are expected to hand in 8 billion Euros.
On a per person rate this are 100 Euros of which each Greek citizen will receive around 400 Euros.
Of course there are no direct transactions between citizens.
So Europeans do not need to worry about how they should open their pockets and handing over the cash.
There are certainly some institutions and political leaders ready to handle the transfer of the G-subsidy for a considerable management fee.
The list of vulnerable real estate assumes an ever greater proportions.
U.
S.
banks facing a dramatic loss of value.
Even German banks that have invested in real estate are affected.
The reason: In the U.
S.
lose enormously since the financial crisis, commercial real estate in value.
Upon the failure of the tenant or insolvent will decrease the revenues for the corresponding Real estate.
High rents and sales prices can be achieved not because of the numerous vacancies.
The rents for office buildings, factories and homes are under pressure.
In many cases up to 50% of the rents paid to achieve 2007th The funds of the investment banks have been addressed very speculative, affects particularly problematic.
Real estate were up to 90% or more purchased on credit.
The bubble began to rising rents and Property prices.
Now bringing vacancy rates and falling rents, the refinancing of loans in difficulty.
Many banks are forced by the failure of payments to high depreciation.
What extent the losses will assume the long term remains to be seen, but a U.
S.
congressional committee believes that almost half of the loans, 700 billion dollars have been bad.
This means the borrower owes more money than his property is worth.
More negative headlines are not ruled out the consequences for the economy would be fatal: 40 percent of U.
S.
banks could threaten the bankruptcy that could cause actual return new turbulence in financial markets and a new economic crisis.
Lena Schmidt Marketing Manger
SHARE
