“It is a high stakes game of chicken which could drive Greece into Zimbabwe-like printing of their own currency, or send a shock through the banking system as 100 to 300 billion Euros in debt vaporizes from bank balance sheets.”
That 100 to 300 billion Euros in debt in the banks’ balance sheet is bogus. The debt has already vaporized by any modicum of accounting system - they just refuse to accept reality.
The troika is lending Greece more money (increasing that debt) so they can repay the debt!! It’s like playing a Ponzi scheme on yourself.
The equivalent would be a broke, jobless homeowner who can’t pay the mortgage. The bank lends him more money each month so he can use it to pay the mortgage and so the bank can keep the mortgage in the book as good debt.
Utter insanity.
“The troika is lending Greece more money (increasing that debt) so they can repay the debt!! It’s like playing a Ponzi scheme on yourself.”
That’s true. Good money after bad.
We’ll see if they have the nads to cut them off, and eat the loss. It is getting harder to kick the can down the road anymore. The current Greek Government is like Occupy Wall Street and Fergeuson protestors took over Congress.
Obama is lobbying for them to keep paying for Greek restaurant tabs, but I think it is past the point were they will be repaid.
Maybe Obama will pony up a shipload of US taxpayer money to help build socialism over there.