Soumettre la recherche
Mettre en ligne
5 Stages Of Greece
•
0 j'aime
•
320 vues
D
davidnorristcg
Suivre
Concerned with Greece? This is a must read!!!
Lire moins
Lire la suite
Signaler
Partager
Signaler
Partager
1 sur 4
Télécharger maintenant
Télécharger pour lire hors ligne
Recommandé
Us patent cases weekly update november 4th november 11th 2014
Us patent cases weekly update november 4th november 11th 2014
InvnTree IP Services Pvt. Ltd.
BUSINESS PLAN
BUSINESS PLAN
Vladimir Blokh
Economic Outlook: A Pivotal Year Ahead
Economic Outlook: A Pivotal Year Ahead
popeni
Circuito de transmissor de fm potente com transistor 2n2218 toni eletronica...
Circuito de transmissor de fm potente com transistor 2n2218 toni eletronica...
marcelo santana
The Worlds 100 Richest Hedge Funds Feb 2012
The Worlds 100 Richest Hedge Funds Feb 2012
Panayiotis (Panos) Lambropoulos, CAIA, FRM
12 18 1987
12 18 1987
gal1966
Sei A Pivotal Year Ahead
Sei A Pivotal Year Ahead
davidnorristcg
Liam 7 Wonders
Liam 7 Wonders
davidnorristcg
Recommandé
Us patent cases weekly update november 4th november 11th 2014
Us patent cases weekly update november 4th november 11th 2014
InvnTree IP Services Pvt. Ltd.
BUSINESS PLAN
BUSINESS PLAN
Vladimir Blokh
Economic Outlook: A Pivotal Year Ahead
Economic Outlook: A Pivotal Year Ahead
popeni
Circuito de transmissor de fm potente com transistor 2n2218 toni eletronica...
Circuito de transmissor de fm potente com transistor 2n2218 toni eletronica...
marcelo santana
The Worlds 100 Richest Hedge Funds Feb 2012
The Worlds 100 Richest Hedge Funds Feb 2012
Panayiotis (Panos) Lambropoulos, CAIA, FRM
12 18 1987
12 18 1987
gal1966
Sei A Pivotal Year Ahead
Sei A Pivotal Year Ahead
davidnorristcg
Liam 7 Wonders
Liam 7 Wonders
davidnorristcg
2024 State of Marketing Report – by Hubspot
2024 State of Marketing Report – by Hubspot
Marius Sescu
Everything You Need To Know About ChatGPT
Everything You Need To Know About ChatGPT
Expeed Software
Product Design Trends in 2024 | Teenage Engineerings
Product Design Trends in 2024 | Teenage Engineerings
Pixeldarts
How Race, Age and Gender Shape Attitudes Towards Mental Health
How Race, Age and Gender Shape Attitudes Towards Mental Health
ThinkNow
AI Trends in Creative Operations 2024 by Artwork Flow.pdf
AI Trends in Creative Operations 2024 by Artwork Flow.pdf
marketingartwork
Skeleton Culture Code
Skeleton Culture Code
Skeleton Technologies
PEPSICO Presentation to CAGNY Conference Feb 2024
PEPSICO Presentation to CAGNY Conference Feb 2024
Neil Kimberley
Content Methodology: A Best Practices Report (Webinar)
Content Methodology: A Best Practices Report (Webinar)
contently
How to Prepare For a Successful Job Search for 2024
How to Prepare For a Successful Job Search for 2024
Albert Qian
Social Media Marketing Trends 2024 // The Global Indie Insights
Social Media Marketing Trends 2024 // The Global Indie Insights
Kurio // The Social Media Age(ncy)
Trends In Paid Search: Navigating The Digital Landscape In 2024
Trends In Paid Search: Navigating The Digital Landscape In 2024
Search Engine Journal
5 Public speaking tips from TED - Visualized summary
5 Public speaking tips from TED - Visualized summary
SpeakerHub
ChatGPT and the Future of Work - Clark Boyd
ChatGPT and the Future of Work - Clark Boyd
Clark Boyd
Getting into the tech field. what next
Getting into the tech field. what next
Tessa Mero
Google's Just Not That Into You: Understanding Core Updates & Search Intent
Google's Just Not That Into You: Understanding Core Updates & Search Intent
Lily Ray
How to have difficult conversations
How to have difficult conversations
Rajiv Jayarajah, MAppComm, ACC
Introduction to Data Science
Introduction to Data Science
Christy Abraham Joy
Time Management & Productivity - Best Practices
Time Management & Productivity - Best Practices
Vit Horky
The six step guide to practical project management
The six step guide to practical project management
MindGenius
Beginners Guide to TikTok for Search - Rachel Pearson - We are Tilt __ Bright...
Beginners Guide to TikTok for Search - Rachel Pearson - We are Tilt __ Bright...
RachelPearson36
Contenu connexe
En vedette
2024 State of Marketing Report – by Hubspot
2024 State of Marketing Report – by Hubspot
Marius Sescu
Everything You Need To Know About ChatGPT
Everything You Need To Know About ChatGPT
Expeed Software
Product Design Trends in 2024 | Teenage Engineerings
Product Design Trends in 2024 | Teenage Engineerings
Pixeldarts
How Race, Age and Gender Shape Attitudes Towards Mental Health
How Race, Age and Gender Shape Attitudes Towards Mental Health
ThinkNow
AI Trends in Creative Operations 2024 by Artwork Flow.pdf
AI Trends in Creative Operations 2024 by Artwork Flow.pdf
marketingartwork
Skeleton Culture Code
Skeleton Culture Code
Skeleton Technologies
PEPSICO Presentation to CAGNY Conference Feb 2024
PEPSICO Presentation to CAGNY Conference Feb 2024
Neil Kimberley
Content Methodology: A Best Practices Report (Webinar)
Content Methodology: A Best Practices Report (Webinar)
contently
How to Prepare For a Successful Job Search for 2024
How to Prepare For a Successful Job Search for 2024
Albert Qian
Social Media Marketing Trends 2024 // The Global Indie Insights
Social Media Marketing Trends 2024 // The Global Indie Insights
Kurio // The Social Media Age(ncy)
Trends In Paid Search: Navigating The Digital Landscape In 2024
Trends In Paid Search: Navigating The Digital Landscape In 2024
Search Engine Journal
5 Public speaking tips from TED - Visualized summary
5 Public speaking tips from TED - Visualized summary
SpeakerHub
ChatGPT and the Future of Work - Clark Boyd
ChatGPT and the Future of Work - Clark Boyd
Clark Boyd
Getting into the tech field. what next
Getting into the tech field. what next
Tessa Mero
Google's Just Not That Into You: Understanding Core Updates & Search Intent
Google's Just Not That Into You: Understanding Core Updates & Search Intent
Lily Ray
How to have difficult conversations
How to have difficult conversations
Rajiv Jayarajah, MAppComm, ACC
Introduction to Data Science
Introduction to Data Science
Christy Abraham Joy
Time Management & Productivity - Best Practices
Time Management & Productivity - Best Practices
Vit Horky
The six step guide to practical project management
The six step guide to practical project management
MindGenius
Beginners Guide to TikTok for Search - Rachel Pearson - We are Tilt __ Bright...
Beginners Guide to TikTok for Search - Rachel Pearson - We are Tilt __ Bright...
RachelPearson36
En vedette
(20)
2024 State of Marketing Report – by Hubspot
2024 State of Marketing Report – by Hubspot
Everything You Need To Know About ChatGPT
Everything You Need To Know About ChatGPT
Product Design Trends in 2024 | Teenage Engineerings
Product Design Trends in 2024 | Teenage Engineerings
How Race, Age and Gender Shape Attitudes Towards Mental Health
How Race, Age and Gender Shape Attitudes Towards Mental Health
AI Trends in Creative Operations 2024 by Artwork Flow.pdf
AI Trends in Creative Operations 2024 by Artwork Flow.pdf
Skeleton Culture Code
Skeleton Culture Code
PEPSICO Presentation to CAGNY Conference Feb 2024
PEPSICO Presentation to CAGNY Conference Feb 2024
Content Methodology: A Best Practices Report (Webinar)
Content Methodology: A Best Practices Report (Webinar)
How to Prepare For a Successful Job Search for 2024
How to Prepare For a Successful Job Search for 2024
Social Media Marketing Trends 2024 // The Global Indie Insights
Social Media Marketing Trends 2024 // The Global Indie Insights
Trends In Paid Search: Navigating The Digital Landscape In 2024
Trends In Paid Search: Navigating The Digital Landscape In 2024
5 Public speaking tips from TED - Visualized summary
5 Public speaking tips from TED - Visualized summary
ChatGPT and the Future of Work - Clark Boyd
ChatGPT and the Future of Work - Clark Boyd
Getting into the tech field. what next
Getting into the tech field. what next
Google's Just Not That Into You: Understanding Core Updates & Search Intent
Google's Just Not That Into You: Understanding Core Updates & Search Intent
How to have difficult conversations
How to have difficult conversations
Introduction to Data Science
Introduction to Data Science
Time Management & Productivity - Best Practices
Time Management & Productivity - Best Practices
The six step guide to practical project management
The six step guide to practical project management
Beginners Guide to TikTok for Search - Rachel Pearson - We are Tilt __ Bright...
Beginners Guide to TikTok for Search - Rachel Pearson - We are Tilt __ Bright...
5 Stages Of Greece
1.
February 2012 The Five
Stages of Grief Greece By: James Solloway, CFA, Managing Director, Senior Portfolio Manager Psychiatrist Elisabeth Kübler-Ross is best known for her theoretical model of The Five Stages of Grief, which holds that, when faced with a catastrophic loss, most individuals pass through five distinct emotional stages—Denial, Anger, Bargaining, Depression and Acceptance. Interestingly, Greece‟s experience as a member of the single-currency eurozone appears to be following a similar trajectory. There was profound denial of the problems surrounding Greece‟s long-term fiscal health as far back as the signing of the European Union‟s (EU) Maastricht Treaty in 1992. There has been widespread anger at the discovery that Greece‟s finances were in a worse state than believed, and at the austerity measures being demanded of Greece by the EU. Greece has been forced to bargain intensively with the EU and other parties since its troubles came to light, and the conditions imposed by those deals are now ushering in a period of economic depression. We continue to believe that the EU and Greece will eventually be forced to accept the latter‟s departure from the single currency union. Greece‟s experience as a member of the eurozone their liabilities and thus avoid running afoul of their treaty appears to be following a trajectory similar to the five obligations. These, measures, along with what Rogoff stages of grief. The first stage took place in 1992. described as “decades of low investment in [Greece‟s] 1 statistical capacity,” have created a climate of severe Stage 1—Denial mistrust between Greece and its fellow EMU members, which is reflected in the harsh austerity measures being In the Maastricht Treaty of 1992, EU member nations demanded by the EU. pledged to limit deficit spending and national debt levels. Fiscal conservatism has also been a key requirement for Once these shenanigans, and the significant damage membership in the single-currency Economic and done to Greece‟s finances by the 2008 global financial Monetary Union (EMU). On that basis, the admission of crisis, became apparent, denial quickly evaporated. This Greece to the EMU should have raised the eyebrows of was reflected in exploding yields on Greek government anyone who had studied the history of sovereign debt debt, as shown in Exhibit 1. defaults. As economists Carmen Reinhart and Kenneth Rogoff demonstrated in their book, This Time is Different: Eight Centuries of Financial Folly, the Greek government has been in default roughly 50% of the time since the nineteenth century, far more than any other EMU member. Greece‟s admission into the EMU was not just a matter of denial—it may also have involved a certain degree of deception. A small cadre of investment banks helped 1 create complex, structured agreements that allowed Kenneth Rogoff, “Can Greece Avoid the Lion?” Project Syndicate, Greece and other EU countries to obscure a portion of 2/3/2010, <http://www.project- syndicate.org/commentary/rogoff65/English>, accessed 2/13/2012 SEI / Commentary / ©2012 SEI 1
2.
Exhibit 1: Ten-Year
Government Bond Yields There has also been intensive bargaining among holders of Greek debt. As we have noted in previous commentaries, the decision to enforce a haircut upon private sector Greek debt holders (an IMF-imposed condition), while preventing it from being termed a default (presumably a condition of core EMU countries whose banks are heavily exposed to such an event), has had unintended but serious consequences. First, the ECB has remained adamant that it expects full payment on all of the Greek debt it has purchased—a somewhat peculiar demand, given that (1) the ECB is the sole institution that can create euro-denominated financial capital at will; (2) buying Greek assets at a discount and demanding full repayment constitutes a form of monetary tightening, all else equal; and (3) its demand for favorable treatment will tend to intensify anger and mistrust between official institutions and the rest of the eurozone economy. (The Wall Street Journal recently Stage 2—Anger reported that the ECB had softened its stance somewhat, and would exchange its Greek debt holdings Naturally, denial and deception gave rise to widespread for bonds issued by the European Financial Stability anger. Other EU and EMU nations are angry at Greece Fund, or EFSF, though details are still forthcoming.) for its failure to fulfill its treaty obligations. Greek citizens Second, if Greek debt is eventually discounted to a are angry at their politicians, and angry about having to significant extent, then other troubled eurozone endure substantial austerity measures imposed from governments can be expected to demand similar outside their political system. The most recent austerity concessions. In fact, Ireland has stated publicly that it is package, passed by the Greek Parliament this weekend, watching this aspect of the Greek negotiations closely. If has been met by renewed demonstrations and violence. other nations follow the path Greece is on, the result Press reports indicate that unrest has spread to many would constitute a much greater hollowing out of the parts of the country, and that as many as 80,000 eurozone‟s financial assets than a Greek default or protesters caused significant property damage in haircut, and the risk of such an event could cause Athens, with hundreds of injuries to both protesters and significant financial turmoil if suddenly and fully security forces. discounted in market prices. Stage 3—Bargaining Stage 4—Depression The Greek government has been actively bargaining As we observed in our most recent Economic Outlook, with the EU and other external parties, as well as its own “SEI has steadfastly believed from the start that any citizens, since it first formally asked for assistance in attempt to resolve the crisis, short of full fiscal union, a 2010. The measures agreed to in recent days took many massive transfer of aid, and socialization of national months to hammer out, and are required to prevent an governments‟ debt through the issuance of eurobonds outright default by Greece in late March, when a was likely to fail. The weakest members of the eurozone significant principal payment on its debt comes due. are simply too indebted and uncompetitive. Germany‟s Judging by the late-stage negotiations, mistrust and insistence that the periphery debtors deflate their way to frustration continue to influence participants‟ actions. For health is reminiscent of the eighteenth century practice example, after presenting a hard-won package of deficit of throwing a person into debtors‟ prison until he has reduction proposals to the European Commission (the worked off his obligations.” executive body of the EU), three additional conditions were imposed upon Greece: (1) the promised budget The demands from core EMU nations for Greece to cuts had to be specified in more detail; (2) the package deflate or „internally devalue‟ its way to competitiveness would have to be approved by the Greek Parliament have not abated in the most recent agreement, and the before being approved by the EU; and (3) Greece would inevitable result—depression—continues to be reflected have to provide a written guarantee that the measures in Greek economic statistics, such as the January will be enacted regardless of the outcome of national Purchasing Managers‟ Index, shown in Exhibit 2, which elections expected in Spring 2012. The hard line being measures the performance of the country‟s taken by the troika comprised of the EU, European manufacturing economy. Central Bank (ECB) and International Monetary Fund (IMF) is likely to fuel further anger in Greece. SEI / Commentary / ©2012 SEI 2
3.
Exhibit 2: Greece
Manufacturing PMI eurozone, however. As we noted in a December 2011 Commentary (“The European Union‟s „Fiscal Compact‟—More of the Same”), “We continue to expect that Greece will eventually exit the eurozone…Such news could cause market dislocation, at least in the short-term, but we do not believe it would spell the end of the euro. Instead, we expect the eurozone to remain intact as long as a majority of the citizens in EMU nations (and aspiring EMU members) believe it is in their interest to do so and are willing to pay the price. We would become more concerned for the euro if Italy or Spain started to seriously entertain the possibility of exiting, but at this point, there‟s no sign of that, and the latest agreement is clearly intended to prevent that from happening.” ® According to the Markit PMI report, “Greece‟s manufacturing sector remained deep in recession during In that same report, we also observed that the ECB was January, with output, new orders and employment all likely to play an increasingly active role: “The ECB is declining at severe rates…Remaining well below the likely to become more active if a slowing eurozone 50.0 no-change mark, the headline index signaled economy is reflected in falling price levels. While a deep another steep deterioration in operating conditions and recession and ongoing policy errors pose clear risks to extended the current period of contraction to 29 the euro‟s future, they are also likely to stimulate consecutive months.” additional summits and perhaps more forceful ECB interventions.” Under its new leadership, the ECB has Stage 5—Acceptance played a far more activist role since late 2011, with positive effects on eurozone markets. And as Exhibit 4 shows, the latest PMI price indices for the eurozone are Consistent with the Five Stages of Grief model, we quite dovish, providing the ECB with ample room to believe that the „fifth stage of Greece‟ will involve continue easing policy and to support the EMU‟s acceptance, by the troika and Greece and that the latter ongoing attempts to ring fence the larger economies of must depart from the single-currency union. Under the Italy and Spain. EMU‟s current institutional framework, the adjustments necessary to close Greece‟s competitive gap (shown in Exhibit 3) are simply too severe, and imposition of those Exhibit 4: PMI Output Price Indices measures too far outside of democratic processes, to endure long-term. Exhibit 3: National Competitiveness Rankings Our Funds SEI‟s fixed-income funds do not currently hold any Greek sovereign debt. That noted, the situation in Greece remains a concern due to the potential for contagion to other European countries. Our View We do not believe that departures by Greece or other periphery nations will lead to the collapse of the SEI / Commentary / ©2012 SEI 3
4.
This material is
provided by SEI Investments Management Corporation (SIMC) for educational purposes only and is not meant to be investment advice. The reader should consult with his/her financial advisor for more information. This material represents an assessment of the market environment at a specific point in time and is not intended to be a forecast of future events, or a guarantee of future results. There are risks involved with investing, including possible loss of principal. SIMC is a wholly owned subsidiary of SEI Investments Company. The Centennial Group 511 South Washington Street Lansing, MI 48933 information@refertcg.com (800) 999-9350 THE CENTENNIAL GROUP & ITS AFFILIATES ARE INDEPENDENTLY OWNED & OPERATED. SECURITIES AND INVESTMENT ADVISORY SERVICES OFFERED THROUGH SECURIAN FINANCIAL SERVICES, INC. MEMBER FINRA/SIPC. CORPORATE OFFICE: • 511 SOUTH WASHINGTON AVENUE, LANSING, MI 48933 • WWW.CENTENNIALGROUP.COM• 800-999-9350 462617 DOFU 2/12 SEI / Commentary / ©2012 SEI 4
Télécharger maintenant