Euro

Greece’s Extortion Racket Jumps To The Next Level

by Wolf Richter •  • Comments Off on Greece’s Extortion Racket Jumps To The Next Level

Participants in the G-20 meeting in Cannes thought it would be a relaxed affair of photo ops, handshakes, and fancy dinners, interrupted by rubber stamping the Grand Plan of bailing out Greece, bondholders, and European banks. But then Giorgios Papandreou, prime minister of Greece, fired his bazooka. And the Greek extortion racket was back on.

Just Say No, Germany … and Don’t Listen to Geithner

by Wolf Richter •  • Comments Off on Just Say No, Germany … and Don’t Listen to Geithner

The German parliament has a historic opportunity to say no to the bankers: it gets to vote on expanding the European bailout fund to €1 trillion, though it had just been expanded to €440 billion. Since no one has any money, it will be in form of leverage, the very mechanism that has wreaked so much havoc already.

Berlusconi, waiting for money.

Germany and France Kiss and Make up, But it’s hard

by Wolf Richter •  • Comments Off on Germany and France Kiss and Make up, But it’s hard

The Eurozone debt crisis gets worse. Bankers interfere. And the truth comes out:

“The dreams to see the crisis ended by Monday couldn’t be realized,” says the German government. Easy solutions have evaporated.

Greece’s Extortion Game

by Wolf Richter •  • Comments Off on Greece’s Extortion Game

“Tax fraud is a national plague,” said Greece’s finance minister after he found that Greeks owed $50 billion in back taxes. But it’s complicated. And not much will happen to collect them though Greece might go bankrupt in weeks. Meanwhile, civil servants paralyze the country with strikes because salaries and bonuses are on the chopping block—the most curious bonuses….

France’s Fishy Denials as Mega-Banks Teeter

by Wolf Richter •  • Comments Off on France’s Fishy Denials as Mega-Banks Teeter

“We don’t have any doubt about the solidity of French banks,” said the French government—a week after the collapse of Dexia. All eyes are now on Société Générale and BNP Paribas. BNP is the world’s largest bank with assets of $2.8 trillion, dwarfing France’s $2.1 trillion economy. And they’re desperately trying to sell assets to stay afloat.

Geithner: The Truth Could Cause Significant Damage

by Wolf Richter •  • Comments Off on Geithner: The Truth Could Cause Significant Damage

During his congressional testimony, Geithner fretted that the crisis in Europe could undermine confidence. Alas, bank stress tests were supposed to inspire confidence—yet one of the “safest” banks just collapsed. If inspiring confidence isn’t based on facts and transparency, it’s a con game.

Greece ‘Finds’ Treasure, Stays Solvent For Another Month

by Wolf Richter •  • Comments Off on Greece ‘Finds’ Treasure, Stays Solvent For Another Month

None of the financial shenanigans that the Greek government engages in on a routine basis, as shocking as they used to be, surprise anyone anymore … until there’s something that surprises everyone.

Reform Rebellion In Greece

by Wolf Richter •  • 3 Comments

Another avalanche of demands and plans to bail out Greece rolls over the Eurozone, but Greek society is digging in its heels. The prime minister talks a good game with foreign leaders when he promises reforms, but his own ministries just pulled the rug out from under him.

France Simmers In Its Own Juices, Germany Frets

by Wolf Richter •  • Comments Off on France Simmers In Its Own Juices, Germany Frets

“We’re not doing this for the Greeks, but for us,” said Angela Merkel amidst a cacophony of doomsday scenarios. It’s all about propping up German banks and exporters. For the French, however, the European debt crisis doesn’t seem to exist.

Obama to EU: Get Your S__t Together; Got An Election Next Year

by Wolf Richter •  • Comments Off on Obama to EU: Get Your S__t Together; Got An Election Next Year

The White House is lobbying European governments to shut up and do something. No more disputes in public. No more disagreements over fundamental issues. The world is collapsing, and it’s time to act boldly. Hank Paulson’s extortion racket is back.