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Title: Greece is insolvent! Who Knew?
Source:
AT
URL Source: http://www.americanthinker.com/blog ... ece_is_insolvent_who_knew.html
Published: Sep 2, 2011
Author: Hugh de Payns
Post Date: 2011-09-02 06:46:14 by CZ82
Keywords: None
Views: 3039
Comments: 8
Greece is insolvent! Who Knew? Hugh de Payns The Greeks have shown an unflagging ability to obscure and outright lie regarding their finances. The WSJ reports that perhaps as much as one trillion dollars is needed to bail out European banks. Much of that is needed due to those banks holding so much bad Greek debt. That's right, one trillion. In a 54-page report sent to hundreds of Goldman's institutional clients dated Aug. 16, Alan Brazil -- a Goldman strategist who sits on the firm's trading desk -- argued that as much as $1 trillion in capital may be needed to shore up European banks. Rumor has it that Finland wanted the Parthenon as collateral before they would loan any more money to Greece. The Greeks balked at that, understandably. Now the rest of the EU is lining up trying to secure hard assets for their bailout money earmarked for Greece. The entire Greek bailout agreement is at risk of being delayed indefinitely or blowing up. Yet, who can blame them? Loaning money to Greece is just the same as just giving it to them, you'll never get your money back. So now, in an effort to please the hard asset crowd, German newspaper Handelsblatt reported earlier this week (via Dow Jones Newswires) that EU leaders were considering bank shares as collateral. Oh boy. Greek bank assets as collateral? What's that worth? Probably as much as the change lost inside the seat cushion of living room couch. OK, then, what's next? Cattle, sheep and other livestock? How about olives and feta cheese? A few goats? Are any of these dolts listening to themselves? Greece is broke. Bankrupt. Insolvent. Reuters is now reporting that Greece has missed its austerity goals and is not living up to its agreements for the earlier bailouts. According to the report: "The gap has three sources: 1) the economy is doing worse than expected; 2) some of the measures of the mid-term plan are not implemented as they should be, either they lag or they are not implemented at all; 3) previous measures which were in the baseline plan yield less than expected, in particular tax measures," the official told Reuters on condition of anonymity. This pretty much hits all the major problems. A terrible economy, austerity measures not enacted, high unemployment, deteriorating manufacturing all leading to depressed tax revenues. Looking at the Greek markets themselves, we find 10 year Greek government bonds are yielding almost 18%. Two year Greek Bond are at a staggering 43%. Forty three percent! That says "default" right there. There is really no means of that nation growing out of its debt or being able to service its debt load in a short, medium or long term fashion. File national bankruptcy, default on your debt, get out of the euro, and go back to being a beautiful and pleasant, but sleepy southern backwater.
Poster Comment: "The Greeks have shown an unflagging ability to obscure and outright lie"....... I'm glad I didn't drink any of the water when I was there....
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#1. To: All (#0)
Same concept, coming soon to a town near you!!!
When asked by a Liberal what I bought my Granddaughter for her 1st birthday I replied, "MORE AMMUNITION"!!!! -----------------------------"People sleep peaceably in their beds at night only because rough men stand ready to do violence on their behalf."
Tyler Durden's picture NFP Misses, Prints At 0 As In Unchanged! Unemployment Rate 9.1%, Birth Death Adds 87K Submitted by Tyler Durden on 09/02/2011 - 08:32 Unemployment Key Highlights: * At 0, the NFP number is a plunge of 85K, from a downward revised July, which was previously at 117. This is the biggest drop since September 2010
Not even one lonely job Fri, 09/02/2011 - 08:46 | Link to Comment Bicycle Repairman Bicycle Repairman's picture I justed "booted" an interview. Now I feel bad that I let everybody down. LMFAO 8D Where are the Billionaires today. How come I don't see their pasty smarmy war of terror faces all over the tube. They waiting for the 10 year Anniversary of when they hijacked America?
Didn't the large economy EU countries obscure and outright lie regarding what joining the Euro would do to the lesser economy countries? It's like Goodfellas. They bust them out and sell the pieces.
They lied to themselves as well...had the EU actually stuck to its fiscal and economic requirements for a nation to join Germany would be in its own sandbox...
America...My Kind Of Place... "I truly am not that concerned about [bin Laden]..." "THE MILITIA IS COMING!!! THE MILITIA IS COMING!!!" I lurk to see if someone other than Myst or Pookie posts anything...
This started because after the financial melt down, Greece and the other so called PIIGS were no longer being offered loans at the same % as Germany. All these nations constantly refinance their loans when they come due. Which slowly adds to their debt. When Iceland collapsed and then Wall Street the low interest loans were no longer available. Greece can't afford the new interest rates for these refinances. Now, I know the news kind of hints that the Greeks were using these loans to finance their operations but really I found that what the Greeks were doing was borrowing at German level interest rates and then loaning that money out to their citizens or to neighboring states for a higher interest and pocketing the difference as profit. So even though it looked like Greece was taking on debt it was in fact making money on the deal - until that is the Wall Street melt down. Then Greece was borrowing money at higher interest rates and could no longer finance their operations (or they were now operating at a loss). Make sense?
With the economy still in the dumper -- maybe permanently? -- and full-time jobs becoming as scarce as rain during a drought, huge percentages of Americans have had their (misplaced) faith in the American dream shaken, the upper-middle-class consumerist lifestyle is exposed as a mirage for anybody who plays by the rules. Capitalism and the America that embraced it as a way of life is now and forever more a failure. It does me good to know that the generation that voted in Reagan and his ideology will see their America die from that ideology before their very own eyes and knowing they had a hand in its destruction.
I never really figured out WHY they went to the Euro in the first place... You just knew they would have problems with it and they would eventually end up going back to their own currencies....
When asked by a Liberal what I bought my Granddaughter for her 1st birthday I replied, "MORE AMMUNITION"!!!! -----------------------------"People sleep peaceably in their beds at night only because rough men stand ready to do violence on their behalf."
The little guy can be squeezed economically if he resists. Little Rhode Island did not want the Constitution. They refused to send a delegate to the Convention and refused to ratify until a year after Washington had been inaugurated and the new union had been formed without them. North Carolina held out for six months.
Greece is broke. Bankrupt. Insolvent.
#2. To: CZ82 (#1)
#3. To: All (#2)
#4. To: CZ82 (#0)
The Greeks have shown an unflagging ability to obscure and outright lie regarding their finances.
#5. To: nolu chan (#4)
(Edited)
--GW Bush
--Sarah Palin's version of "The Midnight Ride of Paul revere"
#6. To: war, nolu chan (#5)
(Edited)
They lied to themselves as well...would the EU have actually stuck to its fiscal and eceonomic requirements for a nation to join Germany would be in its own sandbox...
#7. To: nolu chan (#4)
Didn't the large economy EU countries obscure and outright lie regarding what joining the Euro would do to the lesser economy countries? It's like Goodfellas. They bust them out and sell the pieces.
#8. To: CZ82 (#7)
I never really figured out WHY they went to the Euro in the first place... You just knew they would have problems with it and they would eventually end up going back to their own currencies....
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