The Greek problem in EUroland is NOT solved, but the 'solution' and day of reckoning has once again been delayed for a little while.
The latest 'solution' ONLY demonstrates the power of Government to force their Banks to take 'voluntary' haircuts...and also that politicrats are math-challenged.
A 50% haircut? Puh-lease! Pull the other leg why don't you?
Here is some EUro math that isn't being clearly 'told' to you:
e350 billion is the Greek debt
<70 billion> or more in Troika loans are untouched
_______
280 billion remains
<75 billion> or more is being held by the ECB and remains untouched
_______
~200 billion would be the remaining debt to get the haircut
x50% so apply the fifty percent, ignoring the e35 billion held by Greek pension funds [and sit back and wait for the Greeks to realize that their pensions have been nicely 'halved'; do you think the civil unrest in Greece has been anything but a prelude to the BIG riot when this happens?]
So, when double-talking 'leaders' say 50% but it's really closer to 28%, you are at best being unintentionally misinformed, and at worst being blatantly lied to.
- Gee...would a politician lie to save his butt?
With only e100 billion of Greek debt really being eliminated, and a Greek GDP that was e230 billion on 31 Dec 2010 (and sinking fast this year), what we have not seen is a solution, but a funeral of sorts.
- Media hype and temporary Market response is retarded.....
Friday 28 October 2011
NOT 'solved' just delayed..........from Rico
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2 comments:
Do you mean to say that "Greek" and "debt" are separate words?
I thought "Greekdebt" was one word.
Learn something new every 1/365 of a year.
I love justice whether it's heros heralded or the evil eviscerated. So I perch here watching Greece become the Zimbabwe of Europe. They so roundly and urgently deserve it. And so does the rest of Europe who enabled the Greeks to live high off the hog at others' expense.
Greece is bankrupt and its people deserve to savour the deliciousness of it including personal destitution, hunger and the rest of it.
I hope to see the Turks deliver the coup de grace.
If you're a Greek that escaped that socialist pesthole, I commend you.
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