“Private sector” is a rubbery term. Most of the bondholders that lost their shirts during the first Greek default last March, and during the second one currently underway, were banks, including banks in Greece, Spain, and Cyprus. They are now getting bailed out by the public. After nearly all of Greece’s debt was shifted to the public, a third haircut was announced. Now Portugal wants the same deal. The can has been opened.
Monthly Archives: December 2012
“Future Generations Have To Deal With The Financial Carnage”
by Wolf Richter • • Comments Off on “Future Generations Have To Deal With The Financial Carnage”
During the off-hours on Sunday, when few people were willing to ruin whatever remained of their weekend and when even astute observers weren’t supposed to pay attention, the National Association of Insurance Commissioners approved new rules that would allow life insurance companies to lower their reserves for future claims—at the worst possible time—having already forgotten all about the financial crisis.
Ten Big Fat Lies To Keep The Euro Dream Alive
by Wolf Richter • • Comments Off on Ten Big Fat Lies To Keep The Euro Dream Alive
Every country in the Eurozone has its own collection of big fat lies that politicians and eurocrats have served up in order to make the euro and subsequent bailouts or austerity measures less unappetizing. Like in 1999: “Can Germany be held liable for the debts of other countries? A very clear No!” said the CDU, the party of Chancellor Angela Merkel.
The Relentless Eurocratic Power Grab
by Wolf Richter • • 5 Comments
“The euro has profound economic advantages and is the most powerful symbol of European integration,” said not some wild-eyed dude with a joint between his lips, slouching in a café in Amsterdam, but the “Final Report” by the Future of Europe Group, composed of 11 European foreign ministers. It remains uncertain what they were smoking.