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Defense spending is 10% of GDP (highest in Europe).
I know but the updates were worth the repostI posted that upthread.
the elite must be getting giddy now.
The latest from the ECB suggests that they have raised the ELA "haircuts" on collateral tendered by Greek banks to 45%.
That's obscene -- unless the so-called "assets" are in fact worth nothing.
So let's take the two possibilities:
So which is it?
- The assets are good. The Greek banks should take them back from the ECB and sell them into the market to repay the ECB, keeping the rest of the funds from the sale. With a 45% haircut currently being applied if the prices the banks are holding them at are not frauds then they can easily do this and pay the depositors who wish to withdraw funds while having plenty left over. The amount of collateral (bonds) involved is relatively small compared against the totality of the EU debt marketplace; there would be zero (or nearly so) move in price caused by such a sale. Doing this would shrink the size of the banks involved (perhaps to extinction), but so what? No depositor would lose a nickel and there might be created new business opportunities for new bankers to spring up to fill consumer and business demand.
- The assets are worthless, or at least worth far less than claimed -- and most-importantly, worth less than the haircut marks! If this is the case then the Greek banks have been and are today committing fraud. In this case every one of their executives and managers should be arrested, tried and publicly executed. Yes, in this case the depositor money has been impaired and some will be lost but the people responsible will be properly punished for what they have done, deterring a future similar event.
Either the ECB has no bullets in this gun with their "haircut expansion" because the assets can be easily taken back and sold for more than the haircut value and this is what any rational business person would do or the assets are either worth far less than the haircut value or worse, entirely worthless.
AGAIN: Is this entire charade smoke and mirrors or is the Greek banking system a fraud-laced enterprise that needs to have virtually all of its participants face the harshest possible sanction?
One of these two must be true.
Another interesting point view, which I think might have some truth in it, although you should always take zerohedge with a very big grain of salt:
The Greferendum Shocker: Tsipras "Intended To Lose" And Is Now "Trapped By His Success"
The Greferendum Shocker: Tsipras "Intended To Lose" And Is Now "Trapped By His Success" | Zero Hedge
Anyways, the Chinese story will turn out to be much worse than the Greek situation. 80% of the Chinese stock market exists out of retail investors, and many of those have traded on margin. More than half of the stocks on the Shanghai index have been halted,which means the stock exchange doesn't really exist anymore.
How many times we gonna post this.
I quite agree.
Sorry, only now read the rest of the thread. At least we're all in agreement that the article is interesting! Doesn't happen too often on here.
This is wrong. Haircuts are applied to take into account credit risk. The ECB decides what haircut they want to apply, which implies the credit risk they deem Greece banks and the pledged assets to have. Greek banks are not committing fraud if the assets turn out to be worth less than the haircut implies, but they also can't just sell their pledged assets. Banks, investors and governments frequently apply haircuts to each others assets, depending on their respective credit ratings. If the assets turn out to be worth less than the haircut in the event of a default no one is committing fraud.
Anyways, the WSJ reported Greece requested a 3 year ESM bailout, and was also promising to implement tax reform, and pension measures at the beginning of next week, which had been the biggest sticking point in negotiations for the past 5 months. If this is true, it means Greece has given up and will accept all creditor demands, which means the country will be repaying its debts for decades to come. Greece Requests Three-Year Bailout in First Step Toward Meeting Creditors’ Demand - WSJ
except North Korea and Micronesia!he central banks own the whole world
Can you imagine a society where the greatest prestige, power, and leadership accorded to those with the greatest inclination and capacity for generosity?
Greek banks (all banks) are committing fraud (should be illegal by any base standard of ethics if it's not) when they're selling or buying "assets" known to be junk in reality, and known to be valued such in the future, backed by taxpayers. The euphemism has been "privatizing profits, socializing losses" a stupid way of saying fraud, then you have media brainwashing people like Journeyman that this was all an accident. "They're not smart enough to have stolen everything intentionally."
You'd have to be willfully ignorant after 2008 Wall Street scandal to think both structure of money/debt creation and derivatives shenanigans aren't based on pure theft. Of course your job requires you to not understand the problem, at least to avoid a troubled conscience, not that you should be responsible in any way regardless if your income is funded by it. The central banks own the whole world, there's nothing anyone can do about it. Doesn't matter what we or the Greeks vote, the banks will remain in power until extinction.
I cut my own hair all the time, 1 on my sideburns, 2 on sides and back, 3 on top.
The "irremediable structural flaw" in our civilization that has inspired subtle omnipresent dread and doomsday myths for thousands of years, manifests in every human institution, from science to religion to business. None is independent of the others; none can change in isolation; yet when one changes, all will change.
This is totes different than the doomsday myths you promote, right? Krugman is an asshole who is wrong about everything. He just moves on.
These measures were hugely controversial at the time, and many people thought they would lead to catastrophe. The US economist Paul Krugman predicted at the end of 2008: “Latvia is the new Argentina.”
By the second half of 2010, however, the economy had started to grow again, and from 2011 to 2013 Latvia was among the fastest growing countries in the EU. Despite the fact that the currency was not devalued, exports are now at record highs, some 60% above where they were before the crisis.
I feel sorry for the Ian Welsh dipshit Rambo keeps posting. It must be awful going through life as such a nut job.I feel sorry for the Syrizans, what with the war, and Islamic State and everything.
Come on now, communism has worked great for Europe in the past. It only failed because they weren't committed enough to it.I feel sorry for the Ian Welsh dipshit Rambo keeps posting. It must be awful going through life as such a nut job.
I feel sorry for all you fucknuts. I'm waiting for SF thread hero noodles to post. I hear on good authority he's a SENIOR think tank salary man.
No need. They're completely fucked. Did you read that NC piece?Did you cash in some air miles to attend the Athens Oxi rally tonight?
Yes, I actually quite agree with the end of it. Syriza is incompetent, which has been my point all along. Lest you think I'm a Kraut eating Germany cheerleader (I am quite fond of Germany though).No need. They're completely fucked. Did you read that NC piece?
I've never disagreed with this. They sold the Greek people down the fucking river. This new plan is horrendous.Syriza is incompetent, which has been my point all along
Also, new name for Germany; The Loanwaffe
They sold the Greek people down the fucking river. This new plan is horrendous.
Yes. At The bare minimum, at least SOME debt relief. There's literally nothing on the table.You expected otherwise?
Yeah but that's the whole point. They are going to suffer immensely for voting these idiots in to power and that dumbass no vote. Don't take this to mean I don't feel for the good people impacted by this, because I do. I think it's fucking tragic. But it's the single most identifying characteristic of ideologues of the left or right persuasion to think that cause and effect doesn't exist. The Greeks took money they had no capacity to pay back. Who gave them the money and why is completely irrelevant. They took it, full stop. The onus became theirs at that moment. Then they doubled down with bad voting. When you go back again for more money, you have to do whatever the people giving the money say, period. They could tell you to shoot the first born of every family if they want. It's upon to you to weigh whether it's worth it or not, and make no mistake, in the EU is 100% the correct choice. Grinding austerity is better than the humanitarian catastrophe that would follow an exit. The understatement of the impact in the press has been borderline criminal. There would literally been a lot of death as a result. There may be some death now from medicine shortage which every rational person saw coming from a mile away. They interviewed a diabetic pensioner who voted no and now can't get his insulin. He actually said he never thought that would happen. REALLY?!?!? It was the most likely outcome possible, anyone who didn't see it is retarded. Nobody got sold down the river, they shot themselves in the foot by electing amateurs to run their country. Putting Varoufakis in talks was idiotic. They literally got a worse deal because he has no people skills. If they put Tsakalotos in to start and they get a way better deal without question. It's fucking unconscionable what this government has done to it's own people. They gambled with their own citizens well being on the backs of their righteousness and ego. It's the correct outcome as sad as that may be and as hard as it is to watch.I've never disagreed with this. They sold the Greek people down the fucking river. This new plan is horrendous.
No shit Sherlock.“Why is he signing up now? Why didn’t he do this a few months ago? It would have saved the country a lot of problems,” said Chrysa Drimouli, a 31-year-old architect. “Someone has to take responsibility for these delays that destroyed the country.”
pffffg. thats a very lame joke. which hilarious emereken late night show host made that one![]()
Yes. At The bare minimum, at least SOME debt relief. There's literally nothing on the table.
Lawl @ doghouse believing democracy exists and then blaming people for its absence.