Can someone please explain the eurodeal?

nearlynew

lvader wrote: »

Banks are just companies that are trying to make money, they have a legal obligation to do the best they can for the shareholders which in a lot of cases is ordinary people in the form of pensions.

.

They used to be.

Until they hijacked our economy and became too big to fail.

Now they are just parasites bleeding us dry.

sheffield_lad

Who are they bleeding right now? They got bailed out by the gov but state owning a bank is temporary thing the banks will be sold off and I would expect a decent return (provided there is not a labour gov in at the time DOH!!)

Joe public needs to stop blaming banks and realise borrowing money we didn't have to pay for things we didn't need got us here. It's simply pay back time.

HM Gov needs to realise you have to have more money coming in via taxes to pay for the public purse, you can't keep borrowing

and the unions need to realise the public sector has to be smaller.

nearlynew

howee wrote: »

Who are they bleeding right now? They got bailed out by the gov but state owning a bank is temporary thing the banks will be sold off and I would expect a decent return (provided there is not a labour gov in at the time DOH!!)

Joe public needs to stop blaming banks and realise borrowing money we didn't have to pay for things we didn't need got us here. It's simply pay back time.

HM Gov needs to realise you have to have more money coming in via taxes to pay for the public purse, you can't keep borrowing

and the unions need to realise the public sector has to be smaller.

Yes, you're right.

Silly me.

What was I thinking of?


Sorry

Generali

The deal is this:

- Normal banks will have the amount of debt owed to them by Greece cut by 50%. This is the so-called 'haircut'.
- The Central Banks (especially the ECB) will not get a haircut. They get all of their money back.
- The EFSF is money the German Debt Management Office borrows on behalf of the ECB, guaranteed by the Eurozone member taxpayers (i.e. not British taxpayers). This is being increased to £880,000,000,000 if the Germans can borrow the money from somewhere. They're tapping up the Chinese on Thursday lunchtime. Presumably the Chinese will be offered a preferential trade deal or perhaps support against the US-ians in their up-coming fight over trade.
- There is also a bank 'recapitalisation'. That is EU banks are going to be required to raise an estimated further EUR108,000,000,000. UK banks have been told they need to raise a total of £0.

This leaves a lot of questions unanswered. For example the statement talks about closer fiscal integration. This probably has to happen but on the face of it at least it looks like a big stride towards a United States of Europe with the UK firmly on the outside. Also, quite pertinently, is what happens if the Chinese say, 'No'?

TruckerT

howee wrote: »

Who are they bleeding right now?

Every one of us, roughly speaking, give or take a few

VAT up to 20%, local authority cuts (have you tried phoning your council recently?), bus service cuts, spiralling costs of increasing unemployment benefits, the list goes on and on...

But the bank directors get richer and richer, using money to which they are not entitled

TruckerT

TruckerT

Generali wrote: »

There is also a bank 'recapitalisation'. That is EU banks are going to be required to raise an estimated further EUR108,000,000,000

To my untrained mind, this is the question which puzzles me most

Who will provide that kind of money, and at what price?

And what will the banks use it for? If they simply use it to replace their losses, then it's nothing but another massive bailout

TruckerT

sheffield_lad

TruckerT wrote: »

To my untrained mind, this is the question which puzzles me most

Who will provide that kind of money, and at what price?

And what will the banks use it for? If they simply use it to replace their losses, then it's nothing but another massive bailout

TruckerT

More than likley sell loans mortgages etc just like RBS to other banks that is

sheffield_lad

TruckerT wrote: »

Every one of us, roughly speaking, give or take a few

VAT up to 20%, local authority cuts (have you tried phoning your council recently?), bus service cuts, spiralling costs of increasing unemployment benefits, the list goes on and on...

But the bank directors get richer and richer, using money to which they are not entitled

TruckerT

That money is paying down our credit card aka the deficit nothing to do with the banks taking it lol.

Like Greece and soon Italy we have to have more taxes coming in than going out, so taxes have to rise and the public sector has to be smaller, having said that if we got rid of the inefficiency we may not even notice the difference in services

Generali

TruckerT wrote: »

To my untrained mind, this is the question which puzzles me most

Who will provide that kind of money, and at what price?

And what will the banks use it for? If they simply use it to replace their losses, then it's nothing but another massive bailout

TruckerT

It's not a case of making up losses in many cases. For example, BNP Paribas made the fat end of EUR8,000,000,000 in profit last year but have been told to raise EUR2,100,000 in extra capital.

In that case, and many others, the funds need to be raised to add to bank reserves. It's an attempt to make the banking system less likely to fail.

The money can be raised from loads of different places but they all boil down to either borrowing against or selling assets.

TruckerT

howee wrote: »

That money is paying down our credit card aka the deficit nothing to do with the banks taking it lol

Yes, but why do we have such a large deficit?

Could it be because the banks were given unlimited access to our nation's wealth?

TruckerT