View Single Post
  #24  
Old 05 May 12, 22:05
Tiberius Duval's Avatar
Tiberius Duval Tiberius Duval is offline
Lieutenant Colonel
Finland
ACG 5 Year Service Ribbon 
 
Join Date: Oct 2009
Location: Turku
Posts: 1,290
Tiberius Duval is on the path to success [1-99] Tiberius Duval is on the path to success [1-99] Tiberius Duval is on the path to success [1-99] Tiberius Duval is on the path to success [1-99] Tiberius Duval is on the path to success [1-99] Tiberius Duval is on the path to success [1-99] Tiberius Duval is on the path to success [1-99]
Without Euro, Greeks simply could not have loaned that much of money and get to neck deep in brown substance.

As part of Euro system Greeks had access to very low interest loans, and investors implicitly believed that those loans would ultimately guaranteed by Germany and other rich euro countries. Of course that was offically denied as it was against basic agreements made in founding of currency Union, but as we have seen in EU agreements do not have value of the paper they are written to.

Now Germans and and for example we Finns are paying and paying and paying, nothing that will help ordinary Greeks but it will certainly help UK and US, and French banks. Especially UK banks cause some irritation to me, UK doesn't participate to bail outs but they reap the benefit. What would have been prudent approach is that not a single cent to Greek state, forcing them default and out of euro, forcing home countries of those reckless banks to bailout them themselves. Now risks have been cunningly transferred to tax payers of "rich" euro countries and banks and home countries of reckless inventors have been relieved of those losses.

Typical modern day financial capitalism. Profits are private, but losses are socialised.
Reply With Quote