This page has been archived and commenting is disabled.
Finland To Support Portugal Bail Out In Exchange For Collateralization, Asset Sales
And so the stealthy campaign by Europe to asset strip its debtor prison nation continues. After on Saturday it was made clear that Europe will force Greece to issue an effective DIP loan ahead of its own bankruptcy, collateralizing post-petition creditors, and pushing existing sub noteholders lower in the cap structure, so the same scheme will now be used by Europe to grant Portugal rescue funding in exchange for Finland's "agreement" to help save the country. Per Bloomberg: "Finland will back a bailout for Portugal provided the third euro member to require aid in 12 months agrees to conditions including state asset sales. In addition, Finland wants a guarantee that bailout donors will get their loans repaid before private investors, he said." Which simply said, means that as PIIGS, already held hostage by a monetary union which threatens with world extinction should it be unwound, and by bankers who promise to never lend money should they be forced to take even once cent in senior debt impairments, will next be forced to literally sell themselves off at n blue light special auctions, where the liquidation sale biggest bidders will be none other than the very same financial institutions who have put these countries in their terminal predicament. Incidentally, all this is coming to municipalities and local governments in the US very, very soon.
More from Bloomberg:
“We have reached a common understanding,” said Katainen, who leads parliament’s biggest party after April 17 elections. He made the announcement following talks with the Social Democrats, Finland’s second-largest group since the vote.
The accord ends months of uncertainty over whether the northernmost euro member would try to block rescue measures for Europe’s latest fiscal casualty. Voters in Finland have rewarded parties critical of bailouts, with the euro-skeptic True Finns winning record backing to become parliament’s third-biggest group. Katainen has struggled to secure Finnish support for Portugal’s rescue before a May 16 meeting of his European counterparts and ahead of next week’s coalition talks.
Naturally this means that the political crisisin the country will worsen, now that Timo Soini of the True Finns, whose recent Op-Ed in the WSJ was editorialized beyond recognition, has said he is out of any coalition government.
True Finns leader Timo Soini said today he won’t join coalition talks, after Katainen made a pro-bailout stance a condition for negotiations.
“It was a hard decision, we made it ourselves,” Soini said at a press conference. “We will now do opposition politics.”
Expect many more anti-bailout political victories in Europe over the next several months.
And a little more on the collateralization issue, already discussed previously:
Finland will also require collateral from any countries seeking assistance from the European Financial Stability Facility after Portugal, Katainen said in a joint press release with Social Democrat leader Jutta Urpilainen.
“The collateralization issue makes a lot of sense politically and for sovereign creditors, but this is shadow burden-sharing for some bondholders, who will fall further down the credit food chain,” Sassan Ghahramani, president and chief executive officer of SGH Macro Advisors in New York, said by phone yesterday.
Yet the bottom line is that Europe has kicked the can down the street for at least a few more months. Next: expect to see comparable riots in downtown Lisbon to what now appears to be a monthly, if not weekly, tradition in Athens' Constitution square.
»
- 5546 reads
- Printer-friendly version
- Send to friend
- advertisements -
La Costra Nostra couldn't have drawn it up any better.
Isn't it rich?
Isn't it queer?
Losing my timing this late
In my career?
And where are the clowns?
Quick, send in the clowns.
Don't bother - they're here.
Portugal should NOT agree to asset sales or collateral provisions
Let me print up some "collateral", what you don't want more paper you actaully want something tangible and preferably portable that you can keep under lock and key, hmm what could that be???
I dont think Portugal is in position to set conditions, frankly.
Why not? Why don't they just say, "We can't pay." For them, time will march on. For the Eurobankers, I am not so sure. The fact that the politicians attempt to accept bailouts attest to who pays their bills.
ROFL from somebody who doesn't understand how it works.
A debt is a debt. If it cannot be paid off, and it can't, it's worth 0.
It's the banks that are saying....NO....you can't do this to the FRAUD we foisted upon you.
You must pay off the fraud.
You must be one of those assholes that say...cut the spending on everything to pay bback the MONUMENTAL FRAUD that is our national debt.
NO, there is either default of Glass-Steagall
I don't even know why dipshits are messing around with default, since that gives dipshits like you the idiot leeway to say 'don't think Portugal is in position to set conditions, frankly'.
Well America can pass this little bill called Glass-Steagall...and in it, it will take the fraudulent debt and make it 0.
All legally, because of fraud.
It's not default, if the debt wasn't legal.
Greece as part of the EU can't do this.
So they're being forced to fascistly bend over and serve the banksters anally.
You have your head up your ass so far you have no clue that you still serve the banksters. Have you even realized that? Because screwing people over to pay off fraud, when there are legal precedent throughout all of time before this that default or Glass-Steagall is the way to go is taking one for the team. Up the ass, for the bankster team.
The real question that is true that you should be saying, frankly, and IN REALITY, is that the banksters have no real claim to be able to set conditions. AND NEVER HAVE.
They just have their sophistry EU laws, that every dipshit now follows. The law of the land isn't legal, but they sure are following it.
People really need to get their head out of their assholes and understand the real issues. The debt choking the world 'round, is FRAUD.
Deal with it accordingly, or you AREN'T dealing with it.
Especially when you can't pay it off even if everyone sold their daughters to sex slave traders and threw that in the debt payoff pile.
If people can't understand THIS, very simply, by now, then they are one of the biggest fools of all time.
Tiered debt. Nice. That should really help the secondary bond market for their debt... Or not and hasten an outright default as interest rates realize they've been subordinated.
Portugal has NO choice. Spain is the game.
Portugal has the fiat and minimal threshold of sovereignty necessary to the corner the gold market, which could force the hand of the IMF and fractional reserve bankers, who would have to redirect their machinations elsewhere in the event of a threat to the balance of the derivatives beast. Instead they will probably give away for pennies on the dollar what they could have leveraged for more than they seek in handouts. To win they must beat the bankers at their own game.
Somewhat agree, but this would be a long hard fight. An isolated (from capital markets) Portugal suddenly becomes a chaotic and riotous Portugal. Unfortunately, the nation has a lot of dependents who need their fix. The leadeship will cave to keep their own heads.
The utter lack of political leadership makes me want to flood the moat, retract the drawbridge, and declare independence. Anyone know of any auspicuous dates for revolution coming up on the calendar?
once the food riots start in the US, there will be an unprecedented opportunity for secessionist movements to grab power at the local level. I could rattle on about how i think it would play out, but in general it will just depend on the prevailing racial/ethnic makeup, and whoever controls orgnised crime in the area, as they are the ones most likely to know of(control) alternate supply lines, and thus survive without as much effort as those reliant on goverment infrastructure.
Anyone here know the percentage the ruling coalition in finland has, without the True Finns?
Might be 105 mp's out of 200.
The cabinet has not yet been formed, and mr. Katainen seems to be trying to force the Portugal bailout by somewhat unconventional, not to mention undemocratic, ways by bringing the bailout to the parliament post haste, on the premises that he'd be prime minister anyway.
The four biggest parties are moderate right-wing National Coalition Party at 44 seats, moderate left-wing Social Democratic Party at 42 seats, True Finns at 39 seats and the rurally oriented Centrist Party at 35 seats, the last of which has announced intention for opposition, but what with their flexible interpretation of truth and promises, that's anybody's guess. The rest have 40 seats, the biggest being Leftist Union at 15 seats (probably opposing bailouts.)
Known coalition members thus number 86 seats. Soini stated that the cabinet forming requirement of supporting Portugal bailout would send True Finns to opposition, and thus the opposition could be 74 seats already if the Centrists keep their promise just this once. The conclusion is that the cabinet will have to tread extremely carefully, and won't achieve much anything lest it gets disbanded perhaps forcing premature election.
Katainen's requirement of Portugal bailout support for cabinet negotiations seems very likely to cause uproar, if/when people realize they have been sidelined despite last election results. That kind of situation seems quite ripe for huge loss for the National Coalition, and another huge win for the True Finns. That would probably spell true doom for Finland's support for bailouts.
Thank you for the detailed and informative reply :)
Today's news is the planned cabinet coalition. National Coalition and Social Democrats gives 86 seats, three splinters in negotiation are the Greens with 10 seats, Swedish Folk Party with 9 seats and Christian Democrats with 6 seats. This gives them a maximum of 111 seats, of which the Greens is still reluctant according their chairwoman. Already almost certain to be in opposition are True Finns, Centrists and Left Alliance, altogether 89 seats. Katainen shows confident face, but this coalition is anything but reliable. And if Greens really go to opposition, then it all falls apart immediately. Even if they go for the cabinet, their members are individualists, so there's no guarantee of passing a vote due parliament majority.
Here's hoping for it. Anything would be better than the business of bailouts as usual, and there's still the chance of building anger of the populace due to yet another watered down election victory.
True Finns may gain more voters, but only when credit losses from Greece, Ireland, Portugal etc. start rollin' in. Thus far most Finns have somehow failed to connect the dots between National Coalition's Jyrki Katainen and Finland's payments to this Ponzi scheme. Katainen still has them charmed up like a pied piper and is leading them to the edge of precipice.
In 5-10 years time, Finland's sovereign debt has reached burdensome levels, central bank gold stolen by Brussels kleptocrats, most productive industries moved abroad, and the country filled with asylum seekers from Muslim countries. All in the name of "being a reliable and responsible partner towards the other EU countries".
Not a dime for Portugal until they solve the Madeline McCann abduction ! Let them hit up Brazil for some of O'bama's off shore drilling funds ! Monedas 2011 Let them eat cork !
Here are some good theories and background on those potentially surrounding her abduction:
http://aangirfan.blogspot.com/2011/05/dutroux-wife-released.html
Ronna Ricardo of the Profumo affair reported the following:
"She was involved in supplying young girls to 'the man in the mask' but drew the line at supplying girls under 15-16, he preferred 12 and under. Others found those girls for him.
"There were rumours of an orphanage in Ireland (Ronna had contacts in the IRA) where men she named for me filmed children being abused by people specially chosen for blackmail - as they were being slowly strangled to death by Anthony Blunt. Snuff-movies."
http://aangirfan.blogspot.com/2011/04/double-agents.html
Wouldn't be a surprise in this sick world to hear she was snatched up by a spy service to blackmail a politician somewhere, you could also invoke Occam's razor and settle on her being fish feed somewhere. Fact is I don't think anyone will ever solve this case.
Portugal ought to say 'give us the money or we default. No asset sales'
These PIIGS should learn the game chicken.
+1
Ireland should have done this in November last. Lots of people were telling TPTB to do that. But of course not.
completely agree! the bailouts are not for the countries getting the money anymore, they are solely for Germany, France and the ECB
A very good point. Even though noone will leave this failed experiment without at least a partial default anyways, and it would in the longterm be healthier to default now, that these countries even accept conditions is a joke. It may be cocky to say "I don't fucking care what i owe you. You let me kick the can once more, or i just won't pay back. End of Story.", but hey, the way the banks treat them isn't much more cooperative as well.... mutuality is a wonderful thing :)
It is the politicians of south europe, not the people who want this.
Most politicians need just five more years of status quo, then they are all set.
Then it falls apart. This may be a long slow boring train wreck.
Let the auctions begin. Great beachfront property in both debtslave states.
Property is great until the government decides on a "foreigner property owning" tax or like Spain where they levy an improvement tax or even the property can just be taken away...
I concur
Pretty soon, every European is going to wake up and realize they have become post-Weimar Germans. When that occurs, the nationalist movements we will see in every country will change the world for 100 years.
It's kind of a sad state of democracy, when the only parties acting in the interest their own country, are far-right nationalists.
I hope so.
It is time for europe to keep kick those poor dark people out.
Even in europe political correctness is wearing thin.
You being sarcastic or serious here? You're aware that what led to this situation are fundamental issues, rather than internal issues like immigration policy, right?
I am aware that fundamental issues are paramount, but the demographic trend is clear.
I am not a racist. Rich dark people are always welcome in my neighborhood.
The end of political correctness is just a small side benefit as the main fundamental issue resolves itself in europe.
"kick those poor dark people out"
Yeah, good luck with that. I think there will be nationalism, but I didn't say how it would end up. I give odds of 40% that the continent becomes a Caliphate.
only in your wet dreams
And yet how do nationalist movements take place when "nationals" are diluted and divided by the foreigners foisted upon the peoples under the guise of "diversity"? Then we shall see just how (not) well "diversity" works. Yesterday, an early morn errand included two quick stops: one a drive-through coffee kiosk and the other a gas station. Kiosk was staffed by a Korean (English? Barely!) and the gas station by a Ukrainian (English? So-so.). Greece has almost 9 million people and sure they are having problems, but when the dust settles: one country with one language and a sense of "togetherness" can pull it together a lot faster than a a country, such as the US, which has balkanized itself and turned itself into pieces where this group has special privileges and that group has special privileges. On that note, one wonders how American Indians are allowed that dual citizenship where they do not have to serve in the military via draft, if called. This country needs to end all dual citizenship. Either you are a citizen of this country or not; stop splitting hairs and making "super citizens" that pick and choose as suits them.
Pretty soon, every European is going to wake up and realize they have become post-Weimar Germans. When that occurs, the nationalist movements we will see in every country will change the world for 100 years.
(So nice, I said it twice)
Less jackboots, more circus this time.
And all this puppetmastered by the totalitarian EU-commission. It was quite clear after all the interventions by Mr Rehn in Finnish domestic policy that the social democrats will sell out their voters and settle for some cosmetic and unrealistic consessions. And the next campaign towards permanent transfer union where core europe would have to subsidise the insolvent south forever has started as Mr Jean Claude "i have to lie" Juncker today lobbied for common eurobonds. This will all end up in a major political crisis which will snap the insolvent back of the shiny wonder called eurozone.
I am not so sure the north will accept a permanent subsidy of southern europe.
They will insist on collateral from now on.
Two can play chicken.
Exactly, that's why i said there will be a major political crisis.
Otherwise fine, but Rehn is from Centrist Party background, and Social Democrats should have nothing to do with that. Have to mention, though, I've been amazed how he at least appears to keep his word. Guess there's first time for everything, however unlikely a non-crook Centrist politician would appear. Nah, he just probably haven't been found out yet.
Rehn's political background is irrelevant in this. He's working for the EU-commission and the only goal he's trying to achieve is more taxpayer funded bailouts to preserve the european banking cartel. Judging by the several interventions from him in the finnish DOMESTIC political process in which he has no business what so ever, telling Finland has to choose the right path and support all and any bailouts, i'm pretty sure there's been intense pressure from him behind the scenes to get the social democrats in line with ongoing ponzi scheme.
You mean that someone actually listened to a washout albeit Commissioner? Oh, Katainen surely did, since he's betraying us. And it's no wonder Kiviniemi refused to perform political suicide for the Centrist Party in form of presenting the bailout to parliament. After all, they're probably all too familiar of the party SOP, so they no doubt know what Rehn is likely to do.
Portugal ought to say 'give us the money or we default. No asset sales'
These PIIGS should learn the game chicken.
The Portuguese have certainly learnt the game 'piri piri chicken'. Mmmm, me gusta.
I can't see why this wouldn't suit the Northern European citizens just fine. Now banksters on the other hand...
I concur
Note to self: Resist IMF bailout of America (which will have similar strings) at all costs.
yes, and if they still had Angola they could sell it.
California to be sold to china, why not?? it would pay off our debt..the Louisiana purchase in reverse ..history repeats.."America we hardly knew ye"..secession winds low but raising.
Alas, we can only dream for that kind of miracle. Only dream.
But now there are 57 states caught in the mercantilist web of the world's greatest manufacturing nation.
Only palin makes mistakes.
If obama says there are 57 states and a certain north african country is spelled lybia then i believe him.
Palin is stupid cuz she's a idiot cuz I say so cuz msnbc told me so, cuz she is pretty, she must be stupid. Only girls that smell like patchouli and farts can be smart. She did not go to hahavard = stupid..
Throw in Illinois as a bonus. Sell it before Mexico annexes it.
Wow, they will do anything to get bailed out...ANYTHING!!!!!!
Gimme your women.
The Greeks still need to accept these terms, correct? Ireland, Portugal and Greece really should hold a conference and agree to forming a unified front. They hold all the cards.
The debtors league of nations.
.
The day may come when even I will accept a military coup in America..and it will come from the right..let them keep up this bail out of big banks and the rape of the people,,higher taxes and austerity ..sure I accept that , but first claw backs and people in jail are needed. no justice no austerity economy .
Blaming the banks is like blaming the liquor store owner for selling to the town drunk.
If the drunk runs out of money and wants to buy on credit only a fool would grant it without collateral.
Except to extend this analogy, the "liquor store" has been selling grain alcohol to these "drunks" since they were babies.
Sorry, but the old perpetrator-victim model doesn't work here..... just as it never ever worked for any dependent-abuser abuser-dependent relationship. ALL involved willfully joined this mess. All of them will now face the consequences.... and the consequences are: Money was lended and accepted while KNOWING that it cannot be fully paid back, therefore, exactly this MUST now happen.... there is no way around this, only extending and pretending. Fuck, the economy on the entire EMU is based on a debt driven economy! All of this was as clear from the start, as 1 + 1 = 2
Wasn't saying they aren't drunks. But when it comes to economic sophistication, Greece, Ireland and Portugal were not exactly the adults in the room when they entered the Euro.
My post wasn't a reply to your post :) Yes i know, the layout makes that sometimes difficult to see.
I agree.
Everyone is to blame.
Tyler is pandering again and blaming just the banks.
If I remember right, it is the banks that formed the central banks and created the fiat miracle of an never ending supply of debt. It is the banks that nurtured and insured its' survival through the elimination of specie redemption, creating ever new forms of exotic derivitives and amassing leverage positions that would astound their brothers from just 100 years ago. It is the banks that bought and control the levers of government.
All while proclaiming our liberty and freedom to choose from tweedledum and tweedledee. All while controlling the media that provides our source of information.
Yeah, Tyler is pandering. What a bankster suckup.
Ya, I saw a guy selling smack to an 7 year old, I was gonna say something to the 7 year old, but it's his life, he should know better. The smack seller shouldn't have his god given right to make a profit impinged....
Makes sense to me...
<end snark>
+1
Welcome to our (US) world Portugal. The selling off of US assets started under Bush -- selling the ports, public lands, etc. to the Arabs. Once everything has been sold, you are no longer considered a country, merely a franchise region or annex of the buyers.
Dup deleted.
For Portugal the reversion to the old days will be quite seamless. Why do you think all the decendants of Salazar's yes-men (& women) are still doing their daily mind-fuck of the peasantry from their public-sector-for-life positions? It was always going to be this way, there was never any intention of becoming a thriving contributor to the European dream, was there??.
The farm doesn't owe us much & we have our back-up country, so sod em if they start their nonsense.
Shame though, it is a beautiful country; at least from where I am sitting.
Rarely in history has man been so willing to hasten his enslavement through the manufacture of his own chains. Willingly arming his enemy, serving as cannon fodder to the cheers of his neighbors and family. Voting for the confiscation of his wealth, guaranteeing corporations rights and priviliedges he fails to demand for himself.
This is the humanity of despair. People desperate to keep a home or feed themselves, while poisoning themselves with fast food and manufactured nutrition for a lifetime of medication and healthcare follies.
While your water, air and food have been formulated to slowly kill and disease, the last vestige of hope, the brain has decided to stop working. It no longer identifies the dangers, it can no longer assimilate information, it has failed to consider conceptual higher level process. This last bastion has been breached. It has become herd like in the face of overwhelming predators.
Living on reflex and in constant fear, we are herded to one conclusion after the other without ever taking the time to look up and examine our surroundings. Some even boast of how well they are running and how they are at the front of the herd.
The liberty and anarchy of the well balanced savannah is being replaced with the canyon walls of the box. The well structured and linear lifestyle with a well defined beginning and end. Not much of a view, but atleast you are comfortable with the seemingly safe surroundings. That is until you reach the end of your own canyon.
Chains first. The cull comes later.
Choose your poison: Nukes or Modified Plague (probably Smallpox).
The elite will see us fry or cough ourselves to death.
They'll probably go for a plague, since that leaves their assets largely intact.
Our fault. We shold have put all these guys in jail by now but we haven't and we won't (except for the odd scapegoat).
Why don't them force all Greeks to buy shitty Nokia PDAs?
+1 Sean7. However from a spiritual evolution angle we are, belief it or not, living in a great time for growth!! - No point in telling the 'idol' watchers though :)
The only solution for the highly indebted european countries to do is a complete restructuring of debt, government and monetary system. First, they should default on their debt. Negotiate for a 50% write down so that the debt becomes manageable. Step two, cut government spending enough to balance their budgets. This will make servicing the remaining debt possible. This means austerity for some, while supporting the truly needy and no subsidies for corporation. Step three, return to a gold or silver standard. Step four, get rid of a 100,000 pages of regulations, and layoff the people who stifle new business formation. With balanced budgets, monetary stability and easier regulatory compliance, investment will flow into these countries and a real economic recovery can take place. Yes, the transition will be ugly and nasty. But recovery will be swift once the restructuring is complete.
http://www.TheAngryGrapes.Com
You forgot the most important step: Leave the EMU, else you just kicked the can really far.
The solution has always been the same, but has rarely been considered: eliminate government. How long have we had government? Has it ever worked (for more than a few chosen ones)? Humans will be consumed by the same paradigm until they change it- completely, without reservation or compromise.
Just say no to the drug of the Elites. Why willingly allow these parasites to drain the blood of wealth and freedom from your bodies? Because you think you might become one someday?
It has been made worse by the parasites developing a new parasitic class that helps drain the blood via welfare and other compensations. When there are too many parasites, the host dies.
If this is the future of the human race, is the attempt at real liberty not worth the struggle?
layoff the people who stifle new business formation.
but but Portugal would have no public sector left if that happens :( -- all great countries must have a large public sector...mustn't they ? ??
This is what happened yesterday in Athens.
http://www.youtube.com/watch?v=celyhv_P79Y
Coming soon to municipalities and local governments in the US? This is civilized theft compared to what's going on in Michigan.
It's getting almost no press coverage, but Michigan Governor Snyder is making "bold" use of legislation passed to head off haircuts to "investors."
http://www.alternet.org/newsandviews/article/564373/mi_gov._rick_snyder%...
Benton Harbor, MI reportedly has $6M in outstanding debt. Some emergency, eh? He's got another 20 local governments in his crosshairs . . .
When government isn't properly performing its duty of serving "investors," a hostile takeover is the only answer in Michigan.
A sad day :-(
The social democratic party cheated their voters in a way that it is just incredible. Before elections, they promised that they will support only such support package that includes investor responsibility. Now there is absolutely no such thing in the package. The banks have won.
i hope debtor prisons are atleast the country club prisons with conjugal visits