You might need to explain yourself more clearly, one under god.

>>the bond traders...who funny enough control both ends of the bonds
are bying them up..at half price<<

That isn't the way it works, you know.

Here's a tutorial for you, so that you can understand the mechanics of bond trading:

http://www.investopedia.com/university/bonds/#axzz1cVCv04Wf

Section 4 tells you about yields and pricing. Bond traders are merely the facilitators - they do not control either yield or price. They certainly don't "buy at a 60% discount yet get their payment in full", which is what I believe you said earlier:

>>non bankers are getting all the bond value... bying it at a 60% discount][yet their getting their payment in full]<<

The face value of a Greek Government bond will, if the rescue package goes through, be half what it was before. This reduces their external debt with one stroke, and shifts the pain to the bondholders.

Why does this get you so worked up? It is painful, it is probably illegal, and it certainly doesn't entirely solve the problem. But you seem unhappy for a different reason.

Care to explain more fully? Diagrams, links, references, any or all of these would help.

from
http://www.bbc.co.uk/news/business-15491690

""Private *banks holding Greek debt
will accept a write-off of 50% of their returns.""

what about private bond traders?

""The move is expected to cut the nation's debt load..to 120% of its GDP in 2020...Under current conditions,..it would have grown to 180%.""

debt load means current repaynments

""Reluctant *banks""..

not reluctant 'other bond holders'
they still get it repaid in full*
see link

quote/""What is a bond yield?

The yield is the return received by an investor
who buys the bond at today's market price.

Let's take an example. A bond is sold by a government for 100 euros, paying an annual interest rate of 4%, or 4 euros per year. The yield is 4%.

But then the market price of the bond falls to 50 euros.
The interest payment (the coupon) is still 4 euros per year.

So for a 50 euro investment
*the investor..can get a 4 euro annual payment,
which is a return or "yield" of 8%.""

continued at link
http://www.bbc.co.uk/news/business-11743952
The key thing to remember is that bad news
drives down bond prices, which pushes up bond yields.

banks..""..had initially offered a 40% "haircut",
edited see link
http://www.bbc.co.uk/news/world-europe-15472679

Bailout fun d

This can be done in two ways:

By offering insurance to purchasers of eurozone members' debt - in principle making their bonds..*more attractive to investors*

and thereby lowering governments' borrowing costs.
edited

Bank recapitalisation

European banks..
will be required to raise about 106bn euros
*in new capital..by June 2012

so who will issue the bonds?
then who will buy them?

your so clever try answering questions
not putting up links
http://www.bbc.co.uk/news/special_reports/global_economy/

from your link
The first thing that comes to most people's minds when they think of investing is the stock market. After all, stocks are exciting. The swings in the market are scrutinized in the newspapers and even covered by local evening newscasts. Stories of investors gaining great wealth in the stock market are common.

Bonds, on the other hand, don't have the same sex appeal. The lingo seems arcane and confusing to the average person. Plus, bonds are much more boring - especially during raging bull markets, when they seem to offer an insignificant return compared to stocks.

However, all it takes is a bear market to remind investors of the virtues of a bond's safety and stability. In fact, for many investors it makes sense to have at least part of their portfolio invested in bonds.

This tutorial will hopefully help you determine whether or not bonds are right for you. We'll introduce you to the fundamentals of what bonds are, the different types of bonds and their important characteristics, how they behave, how to purchase them, and more.

(Before proceeding, it would be helpful for you to know a little about stocks. If you need a refresher, see our Stock Basics tutorial.)

Next: Bond Basics: What Are Bonds?
Test Your Knowledge: Take The Bond Basics Tutorial Quiz
Table of Contents
1) Bond Basics: Introduction
2) Bond Basics: What Are Bonds?
3) Bond Basics: Characteristics
4) Bond Basics: Yield, Price And Other Confusion
http://www.investopedia.com/university/bonds/bonds3.asp#axzz1cX5rqzZd

"".. In fact, many new investors are surprised to learn that a bond's price changes on a daily basis, just like that of any other publicly-traded security.

Up to this point, we've talked about bonds as if every investor holds them to maturity. It's true that if you do this you're guaranteed to get your principal back;""

lol unless your a bank...!

Read more: http://www.investopedia.com/university/bonds/bonds3.asp#ixzz1cX6hQKMd
5) Bond Basics: Different Types Of Bonds
6) Bond Basics: How To Read A Bond Table
7) Bond Basics: How Do I Buy Bonds?
8) Bond Basics: Conclusion

Read more: http://www.investopedia.com/university/bonds/#ixzz1cX5buOGk

Not quite sure why you are quoting my link back to me, one under god. The idea is that you educate yourself on the bond market, so that you stop making statements that make you look silly.

>>Let's take an example. A bond is sold by a government for 100 euros, paying an annual interest rate of 4%, or 4 euros per year. The yield is 4%. But then the market price of the bond falls to 50 euros. The interest payment (the coupon) is still 4 euros per year. So for a 50 euro investment *the investor..can get a 4 euro annual payment, which is a return or "yield" of 8%.""<<

Perfectly correct, as far as it goes. But the market price is a reflection of the perceived risk, as you remind us...

>>The key thing to remember is that bad news drives down bond prices, which pushes up bond yields<<

You seem to be confusing the market price with the redemption, or face value of the bond. The actions that Europe (and the world) hopes that Greece will implement include reducing the face value of those bonds by half. In other words, the coupon is calculated - not on the original 100 Euros, but on the new value of 50 Euros.

Which, in your example where the bond is traded at 50 Euros, means that the interest paid winds back to 2 Euros, and the yield goes back to 4%.

If you then go back to your bond trader, you will find that the value at which those bonds change hands will reflect the new calculation, the distance between today's date and the bond's redemption date, factoring in the new redemption value and the element of risk that still remains.

The element of risk could, of course, push the yield that the buyer might insist upon, back up to 8%. Which would make the trading price of that bond...?

With me so far?

the egsample you quoted was from my bbc link
but heck any reason to prattle your destraction's

so the bankers take a haircut
and the bond traders get the advantage..by 50% reduction
there is still plenty of detail missing..like which bopnds are getting the haircut..and who holds these old or new bonds at half price

but please mate do your thing
[if the media cant explain..its to much to expect your badioc explanations to mean much..[or mine for that matter]

but the total debt gets halved..somehow
but what if non bankers hold more than half
[and they do]..then the bonds issued to underwritre default..are they getting a cut..[who holds that 'insurance/underwriting'..

one sure thing
i bet its the people who get shafted..[again]

any new bonds issued..are only to bailout
those elites holding the old ones..

to pay back the clever guys
who buy them..at lowerd market rate/value's..
not issuing to create/build but to speculate

then bying them via 'leveraging'..like that one dude
that went bust leveraging 40m billion in eu bonds..yesterday
[watch pbs..yesterday]

then trade them like candy
getting nice bonus for any wise by..or shortsell order etc

but its like explaining to a wise rrrrsss
who puts up basic kiddy links..thinking that makes him clever

even clainming the bbc link
as his link

to you the glory ol mate
im over it

mate it all boils down to the bond rate
so lets stop talking about theiory[lol 4%]
and google up the reality

""The rate on the Greek bond maturing in October 2022 climbed 116 basis points, or 1.16 percentage point,..!,,*to 26.63 percent""

http://www.businessweek.com/news/2011-11-03/greek-yield-rises-over-100-italian-bonds-drop-on-eu-ultimatum.html

so lets se the numbers working out

whats DOUBLE 26%..per year?

its fraud
colluded treason

the 99%..[people]
tied into poverty
and the rich..into a nice bonus

heck in just two years you can get double your money
[so where is the glory mate?]
http://www.google.com/search?q=greek+bond+rate

you defend the treasonous
a bailout...or colluded theft

[odious debt..thus criminal colluded treason]