Golem XIV - Thoughts: Euro downgrades and looting
Golem XIV - Thoughts: Euro downgrades and looting
What will happen now? Well the IMF vulture is circling. Last Friday the IMF, ECB and EU had a meeting with Greece and said publicly that the Greek government should "recalibrate its assets". Which they explained meant Greece should now sell some of its assets to pay off its debts. In other words sell things that belong to the Greek people to pay off the debts of Greek bankers in order to save French and German banks.
Ireland already had this same advice, so did Hungary and in the UK the Tory boys were all set to sell off every woodland they could get their hands on. A pattern here?
The European Banks are NOT healed. The governments who have been bankrupting their people to save their banker friends are running in to trouble. Too much debt and still the banks are not solvent. The decision to 'share' the losses with some bond holders is now rippling out. We will see downgrades in France and elsewhere in the next week.
One thing that would help the banks is if their friends in government could get all sorts of assets in to their hands for fire sale prices. Such assets would bolster the banks in ways far more immediate than making a few good loans. Banking takes time to make a return. Looting is wonderfully quick.
We are heading for another event. Ireland, Greece and Portugal are on point. The pressure on the 'core' nation banks will grow. That will put pressure on the politicians to speed up the looting and or bring forward another cash injection.
What will happen now? Well the IMF vulture is circling. Last Friday the IMF, ECB and EU had a meeting with Greece and said publicly that the Greek government should "recalibrate its assets". Which they explained meant Greece should now sell some of its assets to pay off its debts. In other words sell things that belong to the Greek people to pay off the debts of Greek bankers in order to save French and German banks.
Ireland already had this same advice, so did Hungary and in the UK the Tory boys were all set to sell off every woodland they could get their hands on. A pattern here?
The European Banks are NOT healed. The governments who have been bankrupting their people to save their banker friends are running in to trouble. Too much debt and still the banks are not solvent. The decision to 'share' the losses with some bond holders is now rippling out. We will see downgrades in France and elsewhere in the next week.
One thing that would help the banks is if their friends in government could get all sorts of assets in to their hands for fire sale prices. Such assets would bolster the banks in ways far more immediate than making a few good loans. Banking takes time to make a return. Looting is wonderfully quick.
We are heading for another event. Ireland, Greece and Portugal are on point. The pressure on the 'core' nation banks will grow. That will put pressure on the politicians to speed up the looting and or bring forward another cash injection.
posted by Jay at
1:03 AM
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