plawolf
Lieutenant General
That was a bad deal for Greece, which was rammed down their throats.
They have effectively been forced to sell their future, at bargain-basement prices, to secure this latest loan, which adds to their debt pile and seems to offer no real solution for how Greece could break out of the current spiral they are stuck in.
It's like bailiffs coming to cart off the family silver and other assets to pay the last overdue bill, but by taking away all those assets, it makes it that much harder for the family to earn income, as they are far fewer assets it could use, and thus make it more likely the family will miss the next payment deadline.
This entire thing is wrongheaded and only has one outcome, all this deal does is kick the can down the road and make things worse for everyone involved as next time Greece will be on the hook for more than what they owe now.
The only ones who benefit at all from this are the private hedge fund and banks, who are set to gobble up all those Greek public assets set to go under the hammer on the one hand, and who are offloading all their Greek debt on European institutions like the ECB and other major central banks who are forced to buy Greek debt to stop the slide.
Odds are rather than be responsible stakeholders and invest to make things better over the long term, those hedge funds and banks will just asset strip those public institutions, sack huge numbers of employees to cut costs, raise prices to match "market conditions" (which of course those banks and hedge funds would help set and define), and finally, when they have squeezed all possible profits from those public institutions, they will sell the carcases on piecemeal, or demand a government bail out to keep essential services operational.
The whole system is rigged to allow those major financial institutions to extract maximum reward will effectively underwriting any losses their risky bets might incur.
The talking heads keep harping on about how the Greeks were irresponsible, but no one is saying anything about how the banks and hedge fund have behaved.
There was a reason Greek debt was so high yielding when they bought that debt, and the Greek national debt pile was there for all to see.
By continuing to buy Greek debt when all those warning signs were present, the banks were assuming risk alongside the higher rewards those high yielding papers were offering.
You cannot reap the higher rewards and then act all shocked and horrified when their risky bet backfires. But, obviously, these are not your average day investors, so different rules applies to them.
They have effectively been forced to sell their future, at bargain-basement prices, to secure this latest loan, which adds to their debt pile and seems to offer no real solution for how Greece could break out of the current spiral they are stuck in.
It's like bailiffs coming to cart off the family silver and other assets to pay the last overdue bill, but by taking away all those assets, it makes it that much harder for the family to earn income, as they are far fewer assets it could use, and thus make it more likely the family will miss the next payment deadline.
This entire thing is wrongheaded and only has one outcome, all this deal does is kick the can down the road and make things worse for everyone involved as next time Greece will be on the hook for more than what they owe now.
The only ones who benefit at all from this are the private hedge fund and banks, who are set to gobble up all those Greek public assets set to go under the hammer on the one hand, and who are offloading all their Greek debt on European institutions like the ECB and other major central banks who are forced to buy Greek debt to stop the slide.
Odds are rather than be responsible stakeholders and invest to make things better over the long term, those hedge funds and banks will just asset strip those public institutions, sack huge numbers of employees to cut costs, raise prices to match "market conditions" (which of course those banks and hedge funds would help set and define), and finally, when they have squeezed all possible profits from those public institutions, they will sell the carcases on piecemeal, or demand a government bail out to keep essential services operational.
The whole system is rigged to allow those major financial institutions to extract maximum reward will effectively underwriting any losses their risky bets might incur.
The talking heads keep harping on about how the Greeks were irresponsible, but no one is saying anything about how the banks and hedge fund have behaved.
There was a reason Greek debt was so high yielding when they bought that debt, and the Greek national debt pile was there for all to see.
By continuing to buy Greek debt when all those warning signs were present, the banks were assuming risk alongside the higher rewards those high yielding papers were offering.
You cannot reap the higher rewards and then act all shocked and horrified when their risky bet backfires. But, obviously, these are not your average day investors, so different rules applies to them.
