Greece seeks urgent Bridge financing

grizzly1911

vivatifosi wrote: »

Philip Ammerman has been saying as much in the excellent Atticus blog. Last month he wrote about the potential for Greek collapse here:

http://www.philip-atticus.com/2012/10/the-greek-collapse.html

Rather worryingly, this blog, which has always struck me as even-handed and a good analysis of what is going on there, ended this particular article with (my bolding):

From the public comments attache dto that article an interesting value attached to the tax charge for a "resident".

and secondly because she is considered with an item/τεκμήριο because she "breathes the Greek air" (literally how she put it!). This item/tekmirio (valued at 3000 Euros) is standard for anyone born after 1981 who lives in Greece! When I told her that my daughter lives in Mexico - so "doesn't breathe any Greek air"


So just for having being born in a country a taxable value is attached to it?

Don't give George any ideas.

vivatifosi

grizzly1911 wrote: »

From the public comments attache dto that article an interesting value attached to the tax charge for a "resident".

and secondly because she is considered with an item/τεκμήριο because she "breathes the Greek air" (literally how she put it!). This item/tekmirio (valued at 3000 Euros) is standard for anyone born after 1981 who lives in Greece! When I told her that my daughter lives in Mexico - so "doesn't breathe any Greek air"


So just for having being born in a country a taxable value is attached to it?

Don't give George any ideas.

Crikey, I missed that bit:eek:. Don't move to Latin America or they'll still come and get you. No wonder Butch and Sundance were done for.

Running_On_Empty

The people of southern Europe do not have the same work ethic as the northern Europeans. Corruption is the order of the day, jobs for life and pay little or no tax and live the high life while achieving nothing. Socialism in action. That's pronounced as two words not three, btw.

GeorgeHowell

The Germans will do anything .. anything at all ... to stop Greece (or any country) leaving the Euro. Once the dominos start to tumble there may be no stopping them. Then EU federalism itself could be at risk, and their century-long dream at an end for the foreseeable future.

vivatifosi

There was an interesting news article on Reuters yesterday that I've just caught sight of.

The ECB Chief Policymaker Jens Weidmann has said that an unblemished and honest assessment needs to be made of the situation and that the main creditors shouldn't take a haircut. This comes the same week that Draghi has said the ECB is unlikely to help Greece much further as it is prohibited from crossing the line to direct aid.

http://uk.reuters.com/article/2012/11/10/uk-ecb-weidmann-idUKBRE8A907C20121110

londonTiger

The Banks have a vested interest in Greece remainin part of the Euro. If Greece defaults and exits the Euro a lot of banker money gets lost.

Our politicians are puppets of the banks.

You do the math.

Generali

Just to make the point, a country can't literally go bankrupt as it is sovereign and so simply repudiates some or all of the debt. There is little or nothing that outsiders can do except perhaps try to seize foreign assets (e.g. Argentina having a warship taken by hedge funds a while back when it was in Port) or persuading a friendly Government to go to war on their behalf.

Mrs_Bones

michaels wrote: »

Previously it was suggested that this particular can only needed to be kicked to beyond the US election.....

The fact Greece have turned to Wonga economics is not really an encouraging sign.

There is always an election in the offing somewhere, before the US it was France, next year it's Germany's turn. I can't see Merkel wanting to face the polls in the wake of a Greek fallout so she'll do everything she can to keep them in till then.

The world knows Greece can't pay it's debts but like the emperors new clothes nobody wants to be the country that points it out and causes everyone to start sniggering.

Graham_Devon

Well Greece are now going to have to not only seek, but also secure bridge financing of €5bn.

They run out off cash this Friday. No bailout decision will be made before then.

Good luck Greece. Just who do you approach for this money? Wonga?

Greek officials have released a statement stating they are very confident this will "rollover without a problem". The ECB are breaking more of thier own rules to allow this measure to take place.

Graham_Devon

Now looks like Greece will get the next tranche of bailout money (but will still need bridging loans until then) AND a two year extension on it's bailout conditions.

However, this 2 year extension will add another €32bn to the bailout bill for existing bailouts, plus, will require further tranches of new bailouts further down the line. The bridging loans will also be at a high cost, eating up some of the bailout money before they have even got it.

The aim is for Greece to get to a point where it can provide a budget surplus, however, all interest on bailouts etc is stripped out when it comes to the what's seen as success. Therefore, any budget surplus after 2 years will be miniscule compared to the cost of providing another 2 years leeway.

So basically, all that would be happening is none of the targets have been met, therefore, it just get's extended again, but with even higher debts, and higher interest payments. So all that's happened in the last 2 years is things have got a lot worse, and targets have been reduced. Debt was supposed to be at 120% by now, a target set by those giving the bailouts, however, it's set to reach 189% of GDP by early next year.

The report, prepared for the Eurozone finance ministers does make the point that this plan comes with "very high risk".

Considering the cuts needed for the austerity package to work, I really don't see how they can actually implement them. Were talking 15% penson cuts. Further wage cuts accross the board. Removal of holidays from workers. In a bizzare situation, the police holding back the rioters will see their wages cut hard.

As a commentator said, you end up cutting wages below that needed to actually live, below that suggested for a low standard of living....and then the country has nothing.