Greece up that poop shoot, taxpayers.
"New rescue plan for Greece seeks tougher measures" by Landon Thomas Jr., New York Times / June 1, 2011
LONDON — A new rescue package for Greece is taking shape, one that would offer billions of euros in new loans in return for accelerated privatization and tougher tax collection measures on the part of the beleaguered Greek government, European officials said yesterday....
Related: Greece Going Down?
At the deal’s heart would be an informal understanding that private-sector holders of Greek government bonds might be persuaded to roll over the debts, or extend new loans when older obligations come due.
When you are in a hole do you keep digging?
Exposed banks would not just step back from the precipice of a forced loss on their bonds, they might also hope that in two years Greece will be in a better position to repay its debts in full....
Adding to the urgency has been the persistent flow of deposits out of the banking sector.
Oh, CAPITAL FLIGHT!
What did Greece do wrong?
Since the crisis began, $86.3 billion in deposits have been withdrawn from Greek banks. Bankers in Athens said outflows were particularly severe Thursday and Friday after comments — later described as rhetorical — by a Greek politician about the possibility Greece could stop using the euro.
Oh, they might be GETTING out of the E.U.
European governments have concluded an additional $86.3 billion now, while politically unappealing, would be less costly than if a restructuring of Greece’s debt produced a financial contagion that spread.
I thought the financial geniuses and wizards already fix that?
But how an economy already in free fall will generate the growth to produce the needed budgetary surplus to start paying down debt remains unanswered....
Kicking the can down the road, but the public relations propaganda looks good.
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