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While -- a progress report card for Greece eurozone finance minister is reviewing Greece's progress on meeting the conditions.
Billion dollar aid package an important hurdle for Greece to avoid.
-- march 20 bond.
Region my next -- James Bianco president of Bianco research a lot of contagion fears.
You're still very concerned especially when you saw the new data that came out today out -- Europe yeah.
Yet it did data out of Europe is Europe in a recession or it's just that simple the only question is how big of a recession is the eurozone and and -- economy is nothing short of collapsing it's far worse now.
That it was that the depths of the recession of 2008.
They're losing jobs at a pace it was United States and about three million jobs a month of it was United States that's how fast.
The Greek economy is going down.
Now as far as the risks the financial crisis because they're gonna get their money -- march 20 and they're gonna make their payments.
But the bigger concern there in terms of contagion is.
How many rules are we bending and how many.
Rules are we -- brought right breaking -- order to continue to make Greece move along and what kind of a precedent are we setting for the future.
Didn't bother you with the 800 banks that took that 700 billion dollars in change.
I mean look everybody likes stimulus and it's free money but did that -- you did that make you a little more concerned about European banks.
Yeah it does with one respect.
Usually banks will borrow from other banks in order to find their third they're short term funding in the Interbank market.
Interbank market largely doesn't exist anymore in Europe the only way that they get their funding is they get it through the ECB.
And it's going to be very difficult at some point in the future to say okay.
No longer get your funding from the government let's go back to banks loaning to banks again.
That market is used to be the vital market that we used to watch short term interest rates -- it doesn't exist anymore.
We've never seen this happen I don't know how we're gonna go back to normal without there being some bumps along the -- and so it remains a big to be determined.
As we move forward from here.
-- -- -- doesn't the other call about about Greece and the potential down able Bahrain at Lago.
Time prime minister Mario -- made a really interesting comment he basically said quote but it could be a brutal outcome for the Greek economy.
If this bond swap deal is not approved looks like it's all going as planned.
But those those bond holders really to -- -- -- -- of the keys of the -- -- here for Greece -- think we're gonna be OK here for the next.
Months with ports.
With Greece for the next few months I would probably guess -- we would be okay that the bond swap is going to go thrilled.
Who are more concerned is is in the rules that they're setting up in net they're not calling a default that the fault.
They're changing the rules with the credit default swaps.
So while there might not be a big deal with Greece.
We're setting a precedent that if porch of it gets in trouble or some other country gets in trouble down the road.
They here's the roles.
If you buy.
Protection in the credit default swap market you're not gonna get paid if you think you're hedged you're not hedged and -- to become a real problem further down the road.
Because of the precedent that we're setting right now.
So you know we're gonna get through the march 20 stay.
Period -- okay we're gonna get through the next few months OK but I'm worried that we're setting a precedent further down the road that could become problematic.
Yeah I mean you're talking about European contagion give if you start writing about global contagion from the get pretty nervous and that's unilaterally that I -- -- -- whole story for humans to -- Jaco.
Bianco research president -- stem.
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