Greek Credit Crisis is Coming our way!

Financial Pst ^ | April 30, 2010 | Peter Foster

[NewSlavery]

Much to the frustration of U.S. regulators and legislators, and despite rumours of criminal charges, the grandstanding over Goldman Sachs this week was upstaged by the cacophony coming from Greece. The EU debacle definitely couldn’t be blamed on “unfettered capitalism,” a mythical creature that is part unicorn, part scapegoat. In fact, the Greek situation provided a useful reminder that there is nothing as dangerous as subprime government.

...

A Congressional subcommittee on finance tried to suggest on Thursday that Greece’s situation may have been caused by credit default swaps, CDSs, the form of insurance that drove AIG into the arms of Washington. The committee was disabused by Anthony Sanders, a finance professor, who told them that no analysis of complex instruments was required. “The Greek crisis,” he said, “is the result of massive government spending and debt issuance to fund the spending.” He added that the swaps had in fact alerted the world to Greece’s “credit death spiral” (thus providing a much more reliable guide than ratings agencies).

...

The cost of a Greek bailout will not only fall on the taxpayers of other countries (including Canada), it will boost the likelihood, size and systemic threat of future bailouts. The Greeks will never elect more sensible governments as long as non-Greeks are forced to bear or share the consequences.

Compared with this, Goldman’s alleged client conflicts are the merest side show. The big picture — in Europe as it was, and is, in the United States — is that of self-serving regulators bleeding helpless taxpayers to cover up for the fundamental incompetence of their Rube Goldberg systems.

[NewSlavery]

I like "The committee was disabused by Anthony Sanders, a finance professor, who told them that no analysis of complex instruments was required. “The Greek crisis,” he said, “is the result of massive government spending and debt issuance to fund the spending.” He added that the swaps had in fact alerted the world to Greece’s “credit death spiral” (thus providing a much more reliable guide than ratings agencies)."

I saw the hearing. I would say that Sanders abused the Democrats, and rightfully so.

[Frenchtown Dan]

You know what they say in Greece about bending over?

I hope we don’t borrow any more money from China so we can bail out Greece.

[NewSlavery]

Read this piece. It is the best one I have seen.

Sanders is also on Fox 5 in DC talking about Greece.

http://www.myfoxdc.com/dpp/news/greece-bailout-only-way-to-avoid-collapse-050610

I don’t think he will invited to the White House.

[NewSlavery]

Remember Deliverance with Ned Beatty?

Instead, think of the American taxpayer at Ned Beatty and Obama as the Georgia rustic saying “Squeal like a PIG!”

Or PIIGS as in Portugal, Ireland, Iceland, Greece and Spain.

We HAVE contributed $5 billion to the IMF for the Greek bailout. They are, after all, Obama’s Communist/Labor brothers.

[Frenchtown Dan]

I saw Deliverance with my wife when it was first released in the movies. Good flick.

But Ned Beatty only got corn holed once or twice.

We’re getting it every day.

[seowulf]

You know what they say in Greece about bending over?

Grease is handy for lubing up for what you know is coming.

[Frenchtown Dan]

Right.
But even the lube is getting too expensive, and we can’t drill for more.

[NewSlavery]

Good point!

Wait until they seize our 401Ks (in the works!). And the Dems want combined tax rates of OVER 100%. So, no one can earn over the $250,000.

Clinton and the Liberal elites rarely pay taxes. How?

Foundations.

The Clinton Global Initiative. Slick Willy gets 30% of all donations. But he doesn’t pay it to himself. Instead, Clinton charges everything (housing, food, clothes, etc) to the Foundation. Perfectly legal and absolutely corrupt. Pelosi and all of them have Foundations.

[VRWC For Truth]

Subprime Douchebag Soetoro.

[Don Corleone]

Wait until the Ca. problem hits the fan. As an aside, why are we, a 13 trillion dollar in debt nation funding 17 percent of the Greek bail out?? Hmmmm?

[mlocher]

As an aside, why are we, ... , funding 17 percent of the Greek bail out??

Greece is a part socialist and part capitalist society. It obviously is the capitalist part that failed. Since America had been capitalism's proponent in the past, the Greek debt is deemed our fault by Obama. So, in the name of social justice, we pay.

[justa-hairyape]

Freudian Projectionism strikes again. Socialism has broken the Bank of Capitalism and the idiot socialists blame the bank. Hey idiots, if we cannot fund your socialistic idiocies with the Bank of Capitalism, they can never be funded.

[Frenchtown Dan]

Jeeez.
I wish I ate breakfast before I read this.

[mlocher]

Freudian Projectionism strikes again.Impressive (and I agree)!

Don't use this term in Athents. They'll project something into the air.