This piece was reprinted by OpEd News with permission or license. It may not be reproduced in any form without permission or license from the source.
In addition, "haircuts will apply to only a portion of (Greek) bonds" if enforced. Smoke and mirrors manipulation suggests not, or at least not as announced.
Moreover, troubled banks in greater trouble from haircuts will get bailout help to compensate.
About one-third of Greece's 350 billion debt is held by private international investors. The ECB, IMF and sovereign governments hold another third. The remainder is held by Greek and Cypriot banks and the Greek Social Fund.
If half of Greece's debt is written off, the nation's pension funds will lose 12 billion euros. As a result, they'll face bankruptcy. At the same time, Greek and other banks need hundreds of billions of euros to survive. Some need even more. Patchwork bailouts only delay their day of reckoning.
Even the ECB is skeptical about a flawed deal. Bundesbank president Jens Weidmann expressed alarm about leverage "without putting any new money into the pot."
China and other BRIC countries are being courted to help. None will without compensating benefits. Eurozone countries must contribute most. A workable package is key. What's known makes a bad situation worse. China's got its own problems. Will it exacerbate them by bearing some of Europe's burden?
Most troubling is throwing good money after bad. Greater trouble ahead is assured. Out-of-control debt isn't resolved by more of it.
Neither is repeating failed policies and expecting a different outcome.
Next Page 1 | 2 | 3 | 4 | 5 | 6
(Note: You can view every article as one long page if you sign up as an Advocate Member, or higher).
2
2
1
