interestrateripoff Posted April 13, 2011 Share Posted April 13, 2011 http://www.zerohedge.com/article/contrary-previous-lies-greece-may-not-be-able-access-capital-markets-after-all-likely-see-50 Following the just completed teleprompted preaching of concentrated, yet inverse, truthiness, we find that yet another bankrupt country has in fact been lying about its economic prospects. Following the recent stunning disclosure out of Portugal that contrary to constat promises to the contrary the country was in fact, broke, now we get another admission, this time from a country already bankrupt. Per the FT: "Greece needs time to convince international investors about its reform programme and may not be able to return to financial markets next year as planned, its finance minister has admitted. Greece’s budget plans are fully funded this year but Athens will have to raise between €25bn-€30bn on financial markets in 2012 – a step that would mark the first stage of its international rehabilitation. But Mr Papaconstantinou suggested that goal was in doubt and the timetable would not become clearer until an EU-IMF agreement had been struck for Portugal, the latest victim in the eurozone debt crisis. “A judgment cannot be made before the summer and before Portugal closes its deal,” he said." So now it is trendy for one broke country to bash another broke country? In retrospect Greece should have a right of first refusal of bailout funding: after all it first (was forced to) disclose its bankruptcy. Surely there should be some brownie points for that. But all this may well be moot: Germany is now openly saying the need for a Greek restructuring is coming. Which means that senior creditor haircuts (supposedly up to 50%) are imminent....... Earlier on Wednesday, German weekly Die Zeit reported that EU experts have estimated that Greece must wipe away 40-50 percent of its debt load through a restructuring in order to return to a sustainable economic path http://www.reuters.com/article/2011/04/13/eurozone-germany-schaeuble-idUSLDE73C28V20110413 Ah yes the return to the sustainable path of continual deficit spending. That's the plan, not the sustainable economic plan of a balanced budget but one where you can magically spend 3% of more your income into perpetuity. Exponential growth is not a fiscal risk. Quote Link to comment Share on other sites More sharing options...
izzy Posted April 13, 2011 Share Posted April 13, 2011 http://www.zerohedge.com/article/contrary-previous-lies-greece-may-not-be-able-access-capital-markets-after-all-likely-see-50 http://www.reuters.com/article/2011/04/13/eurozone-germany-schaeuble-idUSLDE73C28V20110413 Ah yes the return to the sustainable path of continual deficit spending. That's the plan, not the sustainable economic plan of a balanced budget but one where you can magically spend 3% of more your income into perpetuity. Exponential growth is not a fiscal risk. This should have happened ages ago. Investments carry inherent risks. You win some, you lose some. Even people who buy lottery tickets understand this. What's so hard for the bond markets to understand. Quote Link to comment Share on other sites More sharing options...
RufflesTheGuineaPig Posted April 14, 2011 Share Posted April 14, 2011 This should have happened ages ago. Investments carry inherent risks. You win some, you lose some. Even people who buy lottery tickets understand this. What's so hard for the bond markets to understand. Because that's how it's always been. That they remember. Quote Link to comment Share on other sites More sharing options...
interestrateripoff Posted April 14, 2011 Author Share Posted April 14, 2011 This should have happened ages ago. Investments carry inherent risks. You win some, you lose some. Even people who buy lottery tickets understand this. What's so hard for the bond markets to understand. Because it's full of investment bankers who don't understand how to lose. Quote Link to comment Share on other sites More sharing options...
izzy Posted April 14, 2011 Share Posted April 14, 2011 Because it's full of investment bankers who don't understand how to lose. Oh yes, our dear quasi-socialist capitalist friends. Quote Link to comment Share on other sites More sharing options...
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