Hidden Benefits of a Greek Debt Default [View article]
I'm sure there are bankers supporting "reform" and additional lending to Greece but the primary culprits behind this bankrupt idea are the political leaders who supported the eurozone and the technocrats in Brussels who embrace collectivism in any and all forms. On any given day, you can see thousands of these little creatures, who populate the EU, EUC, ECB, ESCB and EuroStat, donned in trench coats scurrying about with Blackberry's while busily texting and planning the economic revival of Western Europe. For these progressives, a default within the EU would represent failure of the EU of the itself; this would create a serious fissure in the groundless arguments for collectivism and the need for thousands of apparatchiks. Who knows they might have to join the ranks of many in Greece and get a real job.
The Greece / EU Ballet Enters Act III [View article]
All of the noise about recently announced austerity measures is designed to allow Greece to return to the bond market and borrow around $6 billion on its own but at high rates. Angela Merkel will not commit to assistance.
They have to refinance and finance around $100 billion and nobody is anxious to guarantee, loan or otherwise assist with this amount with or without austerity measures. Without austerity measures, its simply more of same with Greeks living well by spending borrowed money (sounds familiar); with austerity measures, the economic growth and deflationary forces will make default on existing and new debt more likely. After years of self-indugency, apathy, lethargy, profligacy, deception, corruption and fraud they are in a box canyon with no way out.
How do you justify to Germans, who retire in their late 60's, that its in their interests to help the corrupt and ouzo swilling Greeks who retire in their late 50's or early 60's on fat pensions. Rather than tell them how to make baklava and micromanage their economy, It would be far wiser to force Greece to sell its islands and/or its massive investments in state controlled enterprises that span tourism, utilities and shipping to meet its spending needs.
Recognizing a chain is only as strong as its wekest link, the EU should spin them off with a highly depreciated drachma with debts remaining in euros.
Preview from Europe: Fear Trumps Hope as Dow Falls Below 8,000 [View article]
In my mind, it is clearly the global financial crisis that strikes fear and terror into this market. While banking and the real economy are intertwined, yesterdays action was driven by the former.
The comment by Roubini, State Street earnings, a report the BAC would need an additional $80 billion of capital and the international stories all contributed to the massive sell-off.
Credit will not thaw until the global credit crisis is resoved and it is my belief the host of measures already taken will prove insufficient. Sorry for being such a pessimist.
Hidden Benefits of a Greek Debt Default [View article]
The Greece / EU Ballet Enters Act III [View article]
They have to refinance and finance around $100 billion and nobody is anxious to guarantee, loan or otherwise assist with this amount with or without austerity measures. Without austerity measures, its simply more of same with Greeks living well by spending borrowed money (sounds familiar); with austerity measures, the economic growth and deflationary forces will make default on existing and new debt more likely. After years of self-indugency, apathy, lethargy, profligacy, deception, corruption and fraud they are in a box canyon with no way out.
How do you justify to Germans, who retire in their late 60's, that its in their interests to help the corrupt and ouzo swilling Greeks who retire in their late 50's or early 60's on fat pensions. Rather than tell them how to make baklava and micromanage their economy, It would be far wiser to force Greece to sell its islands and/or its massive investments in state controlled enterprises that span tourism, utilities and shipping to meet its spending needs.
Recognizing a chain is only as strong as its wekest link, the EU should spin them off with a highly depreciated drachma with debts remaining in euros.
Preview from Europe: Fear Trumps Hope as Dow Falls Below 8,000 [View article]
The comment by Roubini, State Street earnings, a report the BAC would need an additional $80 billion of capital and the international stories all contributed to the massive sell-off.
Credit will not thaw until the global credit crisis is resoved and it is my belief the host of measures already taken will prove insufficient. Sorry for being such a pessimist.