"The president of the European Central Bank, Mario Draghi, may be the single most powerful figure in the eurozone drama, as head of the only institution with both huge financial resources and an ability to make decisions without a laborious political process....
Yes, those icky people of the planet and their voting get in the way, don't they?
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Also see: Night of the Living Banks
The horror continues:
"Europe considers a ‘banking union’" May 31, 2012
FRANKFURT — The European Commission called Wednesday for a ‘‘banking union’’ that could oversee and, if needed, bail out banks without having to go through national governments....
Isn't that fascism?
The solution, economists and a number of European Union policy makers say, is to cut the knot between governments and banks. Europe should create a central banking authority with the power and the money to take broken banks off governments’ hands — and override national regulators who may be reluctant to force expensive and politically painful restructuring of failed financial institutions....
Germany, which contributes most to the bailout fund, has long resisted such a move and said Wednesday that it would continue to oppose it....
The US bank bailouts made clear the significance of a central authority that could restructure banks. Insurer AIG failed financially and had to be bailed out. Although it was incorporated in Delaware and headquartered in New York, neither state had to go bankrupt paying for the rescue. The burden was shouldered by the US Treasury.
In other words, the COSTS COULD ALL BE HEAPED on TAXPAYERS!!
Ireland went bankrupt because it was unable to cope with the size of the bailouts it had to pay for banks. The government was ready to force bondholders to accept some losses as part of restructuring the banking system. But European officials, fearing a spread in financial chaos, pushed Ireland to have taxpayers shoulder the burden, adding hugely to the country’s debts....
Adding to the pressure, depositors in some countries — most notably Greece — have been pulling their money out of banks....
Banker's paper has been keeping quiet about that.
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What's going on in Greece these days?
"Greek coalition government possible Wednesday; Leaders promise to seek some changes to bailout" by Elena Becatoros and Nicholas Paphitis | Associated Press, June 20, 2012
ATHENS - Sunday’s election gave anti-austerity parties more than 50 percent in total....
Related: Greece's Rigged Election
Oh, yeah!!!!
The Democratic Left is anti-austerity in principle but has insisted that its main priority is keeping Greece in the Eurozone....
Ah, a controlled-opposition front.
European Union official said the terms of Greece’s bailout will be renegotiated because worsening economic conditions have made the old agreement an “illusion.’’
Oh, like the ECONOMIC REPORTS I GET in my Boston Globe business section!!!
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Next Day Update:
"Antonis Samaras becomes premier of three-party coalition in Greece" by Liz Alderman By and Niki Kitsantonis | New York Times, June 21, 2012
ATHENS — Analysts noted that with the economy in a downward spiral and the government bleeding cash, Antonis Samaras, the leader of the New Democracy Party who was sworn in Wednesday as prime minister has little room to maneuver and scant chance of comforting Greeks....
The political turmoil in Athens has also been a thorn in the side of Chancellor Angela Merkel of Germany, who is facing a bailout-weary public as Germany foots a growing bill for the euro crisis. Greece is expected to need even more financial assistance from European taxpayers as its economy continues to stumble.
The new government will face a daunting double mandate: to enforce the loan agreement with foreign creditors — the European Central Bank, the International Monetary Fund, and the nations of the European Union — while renegotiating enough of the bailout to keep the government in power despite mounting social unrest.
Yeah, let the Greeks eat crumbs.
Greece has repeatedly missed targets and dragged its feet on painful structural reforms like reducing its vast public sector, improving haphazard tax collection, and raising billions of euros through privatizations.
But given the distress the austerity package has wrought, the so-called troika of creditors has signaled willingness to discuss bailout terms more adapted to a rapidly unraveling economy.
Oh, those bankers are so gracious and generous!
Elizabeth Prodromou, a professor of international relations at Boston University who closely follows Greece and the eastern Mediterranean countries, said the strength and duration of Samaras’ government would rest on its ability to quickly broker a renegotiation before the country runs out of money and faces potential shortages of basic goods like medicine.
In a WESTERN EUROPEAN nation?
The EXPERIMENT has FAILED, guys!
After 38 years of PUTTING THEM INTO THIS MESS NOW IS THE TIME to.....
AAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAHHHHHHHHHHHHH!!!!!!!!!!!!!!!!!!!!!!!
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