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kmi

kmi
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  • Merkel: Greece needs to do more; summit on Sunday [View news story]
    "These workers are going to get paid in toilet paper."

    I propose Greece name its new currency the Deutche Mark, instead of Drachma. So, they will get paid in Deutche Marks.
    Jul 7, 2015. 09:21 PM | Likes Like |Link to Comment
  • Merkel: Greece needs to do more; summit on Sunday [View news story]
    "The referendum showed the Germans that the Greeks are not going to accept anything that makes them have to save, work, and pay taxes."

    Nope, the referendum from the Greek side was based on whether there would be a pro-austerity program and continued economic crisis, or an effort to promote pro-growth policies. You clearly haven't been paying attention.
    Jul 7, 2015. 09:20 PM | 2 Likes Like |Link to Comment
  • Merkel: Greece needs to do more; summit on Sunday [View news story]
    Tsipras offered to cancel the referendum based on acceptance of the June 25 proposals and Merkel said no. Djoesselboem looked positively giddy anticipating a 'yes.'

    Miscalculations on both sides, or entrenchment of positions....
    Jul 7, 2015. 06:48 PM | Likes Like |Link to Comment
  • Merkel: Greece needs to do more; summit on Sunday [View news story]
    Merkel has already been embarrassed by her insistence Tsipras go through with the referendum believing sanctions... erm... bank closures would persuade the Greek people to vote 'yes'. And, go figure, it didn't work.

    There doesn't seem to be any rioting.... panic... or angst in the streets of Greece.... Power move? No one's noticing if it is.
    Jul 7, 2015. 06:47 PM | Likes Like |Link to Comment
  • Shock expressed as Greece has no new plan [View news story]
    Greece has presented multiple credible plans, the issue is of ideology: growth, versus a very specific form of austerity.

    The ideology holding sway in the Eurogroup seems to be of Schauble's very particular stripe, and has been discredited everywhere in the world. Greece has proposed all sorts of ideas but the EG sticks to it's one programmatic line.

    The Eurogroup has taken the lead here, with the EC and EU leaders abdicating responsibility to the Eurogroup, and the IMF firmly in the backseat. Tsipras' efforts to engage the other members of the Troika have failed as have the efforts from the other members of the Troika failed to move the Eurogroup.
    Jul 7, 2015. 06:37 PM | 2 Likes Like |Link to Comment
  • Shock expressed as Greece has no new plan [View news story]
    "So ... why did they keep borrowing money?"

    The 2012 "bailout" doubled Greece's debt while doubling durations, to backstop the European private banking center (as explicitly stated by European bankers themselves). Greece should have been allowed to hard default in 2010, and again in 2012, but it wasn't: under the aegis of Eurozone solidarity, Greece's captive government signed off on the stupidest bailout in the history of the world....

    Subsequent funds delivered to Greece went to pay creditors and no more.

    End of 2014 the creditors felt Greece needed more austerity, and Greeks did not, and here we are with Syriza in power. Greece hasn't received any bailout cash since August 2014, even while it was entitled to it for performing on its loans which it did till June 30 when it missed the IMF payment - which technically isn't even a solvency issue, and the banks are still solvent to this day (Greece is in a liquidity crisis, not a solvency crisis thus why ELA still exists). July 20 is the date, mark your calendar, that Greece is due to pay 3.4b to the ECB, which it does not have, and which will make this a solvency crisis, at which point ELA will be pulled, Greece will hard default, creditors will lose their money and Greece will lose access to the Eurozone financial system.

    Syriza swept into power on a platform of 'no new loans' and 'growth over austerity' and since every economy in the world has proven that austerity doesn't work it made a lot of sense... except that Tsipras wasn't a pushover and the man didn't wear a tie! The audacity! If he wore a tie, Djoezzelboem would likely have been his best friend!

    So anyway... feel free to stop parroting the tired, old, idiotic, and completely disproven line of 'Greece wants more money' as it is so wrong that mentioning it on an investment website is just embarrassing.
    Jul 7, 2015. 06:30 PM | 3 Likes Like |Link to Comment
  • Greece to present new deal proposals [View news story]
    Under Syriza, the private TV stations that have been mooching power from the public power company are for the first time being caught and fined. A series of plans have been put in place to enable people who have not paid taxes to pay them. Precisely how much of an impact are you expecting Syriza to have after 5 months on tax collections?

    Syriza is the first government in 60 years not beholden to the elitist interests of the 10 or so wealthy families that control the wealth of the country. Comprehensive rebuilding of the tax authority is a cornerstone of Syriza policy, as has been shown in many of their policy agenda and proposals to creditors.

    I agree tax evasion has to be combated, but with every day taken up end to end with bailout conversations very little legislative work is being carried out.
    Jul 7, 2015. 06:11 PM | Likes Like |Link to Comment
  • Shock expressed as Greece has no new plan [View news story]
    It's less likely about Djoesselboem and more about the IMF and EC.

    If you want a billion euro bailout, you talk to EG, if you want a billion euro haircut, that would be the IMF's job.
    Jul 7, 2015. 01:10 PM | Likes Like |Link to Comment
  • Shock expressed as Greece has no new plan [View news story]
    You seem to, and I'm talking to you, not them.
    Jul 7, 2015. 12:27 PM | 2 Likes Like |Link to Comment
  • Shock expressed as Greece has no new plan [View news story]
    There was a plan and it was outlined verbally with the written document meant to be submitted at the Wednesday meeting.

    As to the rest of your comment, they've proposed cutting the gaps with tax increases but haven't had those proposals well received...

    "Athens’ final counterproposal to its trio of bailout monitors would re-impose many of the large-scale corporate taxes and pension contributions that creditors demanded be stripped out amid concern it would plunge Greece into a deeper recession... In addition, it would raise employer contributions to Greece’s main pension fund by 3.9 per cent and would more slowly implement measures to raise the country’s retirement age to 67 and “replace” rather than phase out a special “solidarity grant” to poorer pensioners."
    http://bit.ly/1CYxn7M
    Jul 7, 2015. 12:21 PM | 3 Likes Like |Link to Comment
  • Shock expressed as Greece has no new plan [View news story]
    "The reality is that Greece has been so poorly run that it finds itself in a position that the only available external financing is from international workout funds or rates exceeding 10%. "

    Uhhh... so? Germany's been there 8 times since 1800, more than Greece at 5.

    "It's purely down to what the ECB/Germans think is the least bad outcome for the rest of Europe"

    Right! A negotiated outcome where they take haircuts, maintain control and the Eurozone maintains credibility, or a hard default where they take haircuts, lose control, and the Eurozone loses all credibility....

    Haircuts to the left of me, haircuts to the right, here I am, stuck in the middle with you....
    Jul 7, 2015. 12:15 PM | 5 Likes Like |Link to Comment
  • Shock expressed as Greece has no new plan [View news story]
    ^^ Definitely not realistic, but you've been wrong on Greece with a consistency that's been awesome to behold, so I wouldn't be surprised if you were wrong again.
    Jul 7, 2015. 12:10 PM | 5 Likes Like |Link to Comment
  • Shock expressed as Greece has no new plan [View news story]
    Well you can believe Tricky... or reality:

    Austerity scale in Greece, compared to other nations:
    http://bit.ly/1CY9pcy

    Greece austerity gauge, government spending down 20%, way more than in any other EZ country:
    http://bit.ly/1CY9mO9

    Greek employment at 1985 levels:
    http://bit.ly/1CY9mOb

    Greek export growth failure under the current programs:
    http://bit.ly/1CY9n4s
    Jul 7, 2015. 11:36 AM | 6 Likes Like |Link to Comment
  • Shock expressed as Greece has no new plan [View news story]
    I posted this elsewhere, but I'll put it here too... I think the Eurogroup is far less relevant than the Troika meeting tomorrow but....

    If you ask me, Tsipras is barking up the wrong tree.

    Greece is eligible for IMF guidance even while in arrears. What he should do, is whatever it takes to find the money to pay the IMF it's 1.5b euro in order to get out of arrears, and then apply to the IMF alone for a new program, let the IMF force the haircuts the ECB (and skip this month's 3.5b payment to ECB), apply any and every plan proposed by the IMF and call it a day.

    The IMF has clearly indicated it grasps the situation much better with its most recent releases.

    Greece is easily inside debt sustainability with some of the longest maturities and lowest rates worldwide, and would have no problem making the IMF whole after a ECB haircut.

    The Eurogroup will offer no debt haircuts. It's debatable if the ECB would cut off ELA if forced to take a haircut, but it's also likely that Greek collateral would no longer be junk in the event of a haircut. So.... it gets messy.
    Jul 7, 2015. 11:02 AM | 5 Likes Like |Link to Comment
  • Greece gets a new finance minister [View news story]
    If you ask me, Tsipras is barking up the wrong tree.

    Greece is eligible for IMF guidance even while in arrears. What he should do, is whatever it takes to find the money to pay the IMF it's 1.5b euro in order to get out of arrears, and then apply to the IMF alone for a new program, let the IMF force the haircuts the ECB (and skip this month's 3.5b payment to ECB), apply any and every plan proposed by the IMF and call it a day.

    The IMF has clearly indicated it grasps the situation much better with its most recent releases.

    Greece is easily inside debt sustainability with some of the longest maturities and lowest rates worldwide, and would have no problem making the IMF whole after a ECB haircut.

    The Eurogroup will offer no debt haircuts. It's debatable if the ECB would cut off ELA if forced to take a haircut, but it's also likely that Greek collateral would no longer be junk in the event of a haircut. So.... it gets messy.
    Jul 7, 2015. 10:17 AM | Likes Like |Link to Comment
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