Europe – Greece

The President of the Bundesbank Lashes Out

Jens Weidmann, President of the German Bundesbank, ventured into a veritable lion’s den with an interview in Le Monde, largest liberal daily in France, supporter of President François Hollande and his “growth” policies. And there, he lashed out at Hollande, the ECB, Greece, at everything that smelled of a transfer union, at Paul Krugman even.

Germany Walks Away From Greece

Greece’s exit from the Eurozone has reached critical mass and is now a routine topic at all levels of government. While heads of state still hue to the line that Greece should stay, out of the other side of the mouth comes but—now that the focus is on Spain, the one problem the Eurozone can’t digest. And after Spain is Italy, which is beyond bailout. And now word is out in Germany that Greece is a “failed state.”

Ganging Up On Germany at the G-8

They’d wanted to “blockupy” Frankfurt, Germany’s money capital, for four days with concerts, marches, and speeches to protest against the power of banks and austerity policies. But the city issued a blanket prohibition—highly controversial in a democratic nation. And on Saturday, when demonstrations were allowed, they became the background to the G-8 meeting at Camp David: a three-pronged attack on reason—with President’s Obama’s reelection at stake.

Horrific Moments of Greece’s Year 2011, in Video

Greece suffered in 2011. The economy tanked. Unemployment jumped. The government, up to the gills in debt and cut off from the capital markets, went begging, and in return had to implement painful economic reforms. With their livelihood threatened, people demonstrated, and strikes paralyzed Athens, and street battles were fought with batons, teargas, and Molotov cocktails—horrific absurdities captured in an awesome and shocking video.

Rumors, Denials, and Visions of Chaos in the Eurozone

While the G-8 leaders are schmoozing with President Obama during their slumber party at Camp David, and while the NATO summit, protests, and rallies are wreaking havoc on the streets in Chicago, Europe is re-descending into rumor hell—where good rumors, as we found out last summer and fall, are head fakes that cause huge rallies in the markets, and where bad rumors, though passionately denied by all sides, turn out to be true.

The Greek Extortion Racket In Its Final Spasm

A sad incident got picked up by the German national media, made even sadder by the very fact that it got picked up: in the tourist town Monemvasia in Greece, some local guys accosted a 78-year old Dutchman who has lived there since the 1990s. They thought he was German. So he corrected them. “German or Dutch, it’s the same thing,” they told him and broke his jaw and nose. While the financial noose around Greece tightened.

The Endgame: “Greeks feel hopeless”

On Thursday, rumors that Greece would have a government goosed the stock markets in Europe. While everybody was out to lunch in Frankfurt, the DAX ran up 110 points. In Athens, the ATHEX, which appears to be on a multi-year trajectory toward zero, jumped 4.2%. But on Friday, when it became clear that the rumor was just a rumor, the index resumed its downward trajectory. And Greeks went to bed without a new government.

Greece: “We Are Their Greatest Fear”

“There are certain misconceptions that worry me: for instance, the misconception that whatever happens, we are not going to leave the euro,” said Evangelos Venizelos, former Finance Minister and president of the socialist Pasok party. But outraged Greeks are searching for alternatives, and on Sunday, they’ll get to vent their anger at the political elite.

“Drachma Clauses” For Greece’s Exit from the Eurozone

Greek banks just reported €28.2 billion in losses for the year 2011. Almost 13% of GDP! But no worries. €25 billion in rescue funds were lined up as part of Greece’s bailout package. The banks, not the Greeks themselves, are getting bailed out. But, “solidarity of the union has its limits,” said even soft-spoken Jens Weidmann, President of the Bundesbank. “That’s why we linked the aid to conditions….”

But the PIIGS Get to Live Longer

Germans work longer hours and retire later than many of their brethren in Europe, and after many years of shrinking real wages, they don’t even get paid that much anymore. But it succeeded, at least temporarily, and the dour mood of yore has been superseded by exuberance about their superior economic model. And what do Germans get for their hard work? Well, probably a lot—but the one thing they’re not getting is extra time to live.