Sunday, May 08, 2016

Poor Greece

Everyone knows Greece has been in serious financial trouble.

Most people have not understood the so-called "Greek bailout" was designed to assist private creditors, especially French & German banks. Greek creditors had to accept a "haircut" of €107.1 billion in exchange for their debt essentially being transferred to the public sector (€215.9b disbursed, mostly from the EU, 15% from the IMF - see data here).

Greek banks got only 17% of the recapitalization money. Below 5% of total funds were aimed elsewhere, such as lowering the annual fiscal deficit.

So the Greeks are still in serious trouble - by design. Implosion was delayed. Greece's former Finance Minister Yanis Varoufakis has labeled the process "extend & pretend!" The pockets picked were OURS - the Greeks had little to do with it.

The Bank always wins.


No comments:

Post a Comment

Comment?