Not that many years ago, idiot and greedy bankers who loaned WAY too much money to bad credit risks (like Greece) had to eat their bad loans and fail if they didn’t have sufficient equity. The stock holders in those banks would then be wiped out and any bank bond holders would take losses. Bank depositors would be first in line for any remaining value. Management would be fired and Boards of Directors would be sent packing.
But that was back when capitalism was still a reality in the west.... Before crony governments would buy banks’ bad loans at 100 cents to the dollar on loan balances, and when the banks still had to mark their devalued assets down to real-world market values. Banks were not allowed to speculate and gamble to put depositors’ money at risk...
That recent past is already becoming a dim memory... Sadly.
Greece is bankrupt and the private banks who loaned the money in the first place should have to suck it up... Along with the fool governments and central banks who bought a pile of it. If there are no bad consequences for the fools who made the bad loans, they’ll just do it again as soon as they are allowed to do it all over again.
you have a very odd emphasis on this....but tell me, please, how do bankers make money when they loan out money that isn’t paid back? How does that work?
The EU is somewhat to blame, but the Greeks much more so. Again, very odd you take the stance you do, on a conservative site.
Which raises the question, Who is truly the idiot?
I guess it's the taxpayers who pay to support the fool governments and central banks that prop up failed socialist states.