View Single Post
Old Aug 11th 2015, 06:18 PM
Michael's Avatar
Michael Michael is offline
Herder of Cats
Join Date: Oct 2008
Location: Toronto
Posts: 14,838
Default Re: Why Greece must declare Bankruptcy

Tentative Greek Debt Accord Might Do Little to Revive Economy

ATHENS — The Greek government on Tuesday appeared to be on the verge of clinching a deal for a new international bailout worth as much as $95 billion in exchange for accepting harsh austerity terms and making sweeping changes to the way the country does business.

European officials on Tuesday cautioned that approval of the accord was far from certain. And Chancellor Angela Merkel of Germany told Prime Minister Alexis Tsipras in a phone call that Berlin was skeptical about the deal, saying talks should continue “for a few weeks,” according to a Greek government official.


The deal in its current form offers no relief on Greece’s staggering debt, which now exceeds €315 billion, or $345 billion, despite insistence by International Monetary Fund and Greek officials that an easing of that burden be part of any package. And the uncertainties surrounding months of bailout negotiations have further damaged the Greek economy, potentially making an eventual recovery more difficult than ever.


Any deal also needs approval from other European countries, in some cases requiring a vote by national parliaments, most notably that of Germany. The deadline is Aug. 20, when Greece needs help to make a crucial €3.2 billion payment to the European Central Bank.

As the last two paragraphs quoted make clear, the goal of the EU is to bailout European banks, not Greece. Greek taxpayers on the hook for this additional bailout of the European banks.

Indeed, if Greece is suffereing from a monsterously large debt they can't afford to pay for, I fail to understand how $95 billion in additional debt is going to help anyone except the bankers who will cream off most of it - yet again being financially rewarded for making idiot-stupid investments in Greek sovereign debt. I'll bet the bankers who made these money-losing deals in the first place will pay themselves some big bonuses with the bailout money. That does seem to be the actual game here.
Remember what the dormouse said: Feed your head!
Reply With Quote