Posted on 07/07/2015 5:17:19 PM PDT by Kartographer
That may be a good personal rule to follow, but when it comes to business, and politics the rules of the game can be different. Both parties entering into a contract recognize that a number of outcomes are possible, including the loss of money in loans or other credit transactions. In business, and even personal lending, contracts often foresee and include terms related to situations other than full repayment of balances due. Sometimes the parties decide to re-negotiate their agreements, or in extreme situations seek judicial intervention.
I suspect we're seeing some elaborate negotiating ploys going on between the EU and Greece.
What makes you think we have 25 years. Social Security is sucking fumes and Medicare has been in the red for years.
This is absolutely the most ignorant analysis of the Greek financial collapse I’ve seen yet.
The author lauds the Greeks for rejecting additional loans, and “breaking free”, with no concept about what the consequences of that will be, namely printing unlimited New Drachmas that will be worthless internationally, rather than agreeing to “austerity”, which simply means the government not spending more than it collects in taxes.
The author then states “The banks aren’t going to take this lying down”, because they’re totally confused about the difference between insolvent Greek banks and the European Central Bank that stood to bail out the insolvent Greek banks, except the Greek people turned down that bailout because they turned down the requirement to cut deficit spending.
The author then acts like the failure of the Greek banks was an act of retribution rather than the fact that most people (smart and/or rich people) had already withdrawn billions of sound Euros from these banks during the last few months for fear of them being converted to New Drachmas by the Greek government, which is one of the main reasons the Greek banks shutdown, namely a good-ol’ fashioned bank run.
The author then states the Greek banks shut “in preparation for the very vote that occurred.” No, the Greek banks were forced to shut because all of that evil lending by the ECB was halted because the Communist Greek government walked away from talks and forced the referendum, and the evil ECB had to wait to see how the vote was going to go before considering keeping the Greek banks solvent during the run on Greek banks by Greek depositors because they didn’t trust the Greek government.
I really hate seeing this kind of ignorance being posted at FR.
This is sheer projection. The Greeks don't want to be 'free' of the EU or the Eurozone. They want to stay.
Six months ago they voted for Tsipras when he ran on the platform of refusing payments for the loans they had taken until they were given better terms, refusing austerity on new loans, and getting those loans with no guarantees of payment.
If it sounds insane, that's because it is. No one with even the slightest understanding of basic math, human behavior, or common sense would vote for a man who ran on such a platform, but he won almost a clear majority.
If you read his government's statements in the last few weeks, you will see them assure the people that they will not be kicked out of the Eurozone and definitely not the EU.
This idea that libertarians are spreading, that somehow the Greek people are rebelling against Brussels, is simply not true. They are rebelling against any responsibility to pay loans that they gladly took to extend their unsustainable financial behavior.
The Greeks had plenty of warning. Crazy that everyone didn't deplete their bank accounts months ago when they could. It was also obvious their safe deposit boxes would be the next to go so they should have emptied them long ago and invested in whatever personal protection items they could, buy a shovel, food stuffs and lots of tp. Next on the confiscation list will be pensions and retirement funds.
bfl
Oh, I have been! Some of the panicked responses have been dramatic!
Might just be China. MUCH larger ramifications for the US as their *Market Rout* worsens.
Though the Adriatic *bail-in* solution will no doubt find some adherents here, as well.
The Chinese have gone so bat excrement crazy that not only are they an honorary western country, they are even westener than the west itself.
Smile when you say that, Laowai!
Always with the drama. Always with the promises that "I'm going to get myself together and all I need is just one more loan to get me through." (And a few breaks to come my way)
Eventually the relative shows up in your driveway in a beat-up Yugo with no way to see through the back window on account of all the paper bags and blankets stacked up in the back seat. Just needs a place to "crash for a while" while he "get his act together."
Besides, I've got this big house with all this room. Surely I can provide a corner of my basement. Just a corner. He'll promise to stay out of the way, get a job, and be on his way in just a week or so.
But then, you come home from work and find dirty dishes in your sink. Things in the refrigerator start disappearing. The level of the bottles start dropping in your liquor cabinet. Or worse, the contents of your liquor start getting replaced with water. Piles of dirty laundry start showing up near your washer. Surely you can toss those items in with your wash - since you're doing the wash anyway.
Suddenly all pretense is gone. You arrive home after a long day's work and your "lost" relative is snoring away in the living room in his underwear, with a half-empty bowl of chips on his chest, TV tuned in to sitcoms on rerun. The beat up Yugo is now boldly occupying your driveway, forcing you to take maneuvers to get to your regular spot.
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.