View Full Version : PIGS stands for: Positively Improving, Globaly, the Situation

4th May 2013, 02:08
Positively Improving, Globaly, their Situation.

Greece is on course to contain its debt and keep the level sustainable and should return to growth in 2014, its international creditors said today, adding that the next disbursement of aid to the country should be approved soon.

The European Commission, International Monetary Fund and European Central Bank, together known as the troika, said Greek authorities were on track to meet economic targets soon, which would allow for the next payment of financial support.

"The disbursement of the related €2.8 billion from the EFSF tranche remaining from the previous review could be agreed soon by the euro area member states," they said in a statement after the latest review of the country's performance.

"Fiscal performance is on track to meet the program targets, and the government is committed to fully implement all agreed fiscal measures for 2013-2014 that are not yet in place."

One of the most important steps Greece needs to take is the recapitalization of its banking sector so that banks can start lending to the real economy again. The troika said the process of recapitalization was nearly complete, with most of the €50 billion made available disbursed to four core banks.

"The mission's assessment is that this will provide adequate capital, even under a significantly adverse scenario. These capital buffers will thus ensure the safety and soundness of the banking system and of its deposits," the troika said.

Greece's finance minister, Yannis Stournaras, said the country aimed to achieve a primary budget surplus (the surplus before taking into account debt financing costs) this year. If that was achieved, he said Greece would seek more debt relief.

The troika has told Greece that it could get further debt relief, probably in the shape of lower financing costs, if it meets its fiscal targets, including a primary budget surplus.

The critical long-term goal for Athens is to bring its debt as a proportion of GDP down to a manageable size. The ratio currently stands at more than 160 percent. The IMF has said it must be cut to 120 percent by 2020 to be "sustainable".

In its review, the troika hit a positive note on the debt path and said that it was prepared to consider "further initiatives and assistance" to help bring the debt down more rapidly once Greece has achieved a primary surplus.

"The mission's view is that debt sustainability remains on track," it said.

Euro zone finance ministers and the IMF are expected to sign off on the troika review in May.

That's good to hear that, but honestly I knew this would come.
There is a light, and Greece is going towards it.

Could the PIGS (what means, again: Positively Improving, Globaly, their Situation) outperform us in the future, because of their effort today? Possible. We have laught to much at us that they will have their revange.

Postman Is Glad and Salute you.

4th May 2013, 02:12
The Postman was bitten by a rabid pig, so the Doctor has prescribed one dose of reality:
The basic problem, Sinn argued, is that years of easy credit lowered unemployment and raised inflation in debtor countries. As a result, they lost competitiveness, especially compared to Germany. From 1995 to 2008, he noted, prices rose 9 percent in Germany, 40 percent in Italy, 56 percent in Spain and 67 percent in Greece. When private credit dried up (Greece, Portugal and Ireland) or threatened to (Spain, Italy), countries were left at the mercy of official lenders — Europe’s other governments, the ECB and the International Monetary Fund — and their insistence on austerity.

Debtor countries must restore their competitiveness, Sinn argued. Only that will reduce Europe’s massive trade imbalances — Germany’s huge surpluses and debtor countries’ deficits — and establish a foundation for economic recovery. Unfortunately, there are no easy ways to do this, he said. In Sinn’s view, Europe faces three broad choices, all bad.

And the kicker:

Europe may be out of sight and out of mind, but it’s not out of trouble. Europe has no obvious exit — and this weighs on the rest of the world.
Robert Samuelson: Europe has no exit - The Washington Post (http://www.washingtonpost.com/opinions/robert-samuelson-europe-has-no-exit/2013/05/02/6bf609b8-b34e-11e2-9a98-4be1688d7d84_story.html)

4th May 2013, 02:14
I like maths and stats but hate economists.


4th May 2013, 02:20
Economics is one of the most fascinating fields. It's part hard science, part psychology. And all about humans and markets acting and reacting to incentives, participating in commerce, and creating wealth.

No overpaid, underworked bureaucrat in some public office can plan how humans will interact with each other! It confounds them, and that's the best part!

4th May 2013, 02:27
No overpaid, underworked bureaucrat in some public office can plan how humans will interact with each other! It confounds them, and that's the best part!

Matari you have the cold heart of a quant!

Forget about Brownian motion,


4th May 2013, 02:30
Matari: what you say is true, if it weren't this thread wouln't even exist.

The Postman is so positive that when he breaths he levitates.