• Steve H. Hanke
    05/04/2016 - 08:00
    Authored by Steve H. Hanke of The Johns Hopkins University. Follow him on Twitter @Steve_Hanke. A few weeks ago, the Monetary Authority of Singapore (MAS) sprang a surprise. It announced that a...

Full Speech By Greece PM Papandreou Before Brookings: "Speculators Now Threaten The Entire Global Economy"

Tyler Durden's picture

Your rating: None

- advertisements -

Comment viewing options

Select your preferred way to display the comments and click "Save settings" to activate your changes.
Mon, 03/08/2010 - 12:08 | 257747 Assetman
Assetman's picture

So says the man with $80 billion in off balance sheet liabilities hiding behind the black curtain...

Damn speculators... it really is all their fault!

Mon, 03/08/2010 - 13:16 | 257845 aint no fortuna...
aint no fortunate son's picture

I stopped at his first sentence: "Fifty-three years ago this week, on March 12, 1947, President Truman rose before a special joint session of Congress."

Fucking guy can't even count. Its SIXTY three years, not fifty three. No wonder their budgets are so fucked.

Mon, 03/08/2010 - 13:28 | 257865 Cow
Cow's picture

+100  Hilarious

Mon, 03/08/2010 - 13:44 | 257888 knukles
knukles's picture

Brilliant!  Bloody brilliant!

Its not me, us, WhoTF ever.  We can't count.  How can you hold us responsible to count?  You treat us like we're retards.  Its not nice to make fun of retards.  Quit making fun of me.  I'm a victim.  Every one picks one me.  The whole world hates me and everybody doesn't even know me yet!

Grow the F up.  Get a 12 step program, dork. 

The Germans are brilliant.  Tell everyone to P-off and die, let France handle the rescue and get saddled with the implicit (off-book) laibility and enjoy the cratering Euro for their export regime.
German efficiency, no?  You'd think they could rule all of Europe if they set thier minds to it. 

Mon, 03/08/2010 - 21:42 | 258568 ED
ED's picture

Thanks for the tip Pap

Mon, 03/08/2010 - 12:14 | 257758 seventree
seventree's picture

These so-called 'speculators' look past projected illusion to see hard truth, then act on what they see. And yes, they are the enemy of all who have bet their future on the illusion. Not surprising illusionists are desperately frightened. Reality is an unstoppable bitch.

Mon, 03/08/2010 - 12:19 | 257763 BorisTheBlade
BorisTheBlade's picture

To paraphrase the 20-page speech: it is still just the speculators' fault, who are now "threatening not only Greece, but the entire global economy"

If he included politicians, governments and central banks into the 'speculators' category, then I would agree.

Mon, 03/08/2010 - 12:24 | 257775 Cognitive Dissonance
Cognitive Dissonance's picture

Problem, reaction, solution.

We are progressing to the "solution" phase of the game. Central government to tame all those bad people who don't do as we say and are causing all the problems. Of course, "they" can't do it on their own. "They" must rouse the rabble to turn the power of the mind controlled hive mentality crowd against the few dissenters within.


Mon, 03/08/2010 - 12:20 | 257766 Anonymous
Anonymous's picture

I think the damn speculators are the group of people who have $80Bn in off balance sheet liabilities.

The rest of us are (moderately) sane in not wanting to be a damn speculator.

Mon, 03/08/2010 - 12:21 | 257770 10044
10044's picture

Problem is not speculators you moron, it's all the social ponzi crap you've been promising your people that you now realize you can't deliver, because there's no money

Tue, 03/09/2010 - 13:42 | 259255 Assetman
Assetman's picture

Ding! Ding! Ding!

We have a winner here on isle 9...

Mon, 03/08/2010 - 12:21 | 257771 walküre
walküre's picture

He spoke before Congress?

Who was either present or stayed awake to hear?

I like the direction this is headed.

Mon, 03/08/2010 - 12:23 | 257773 Anonymous
Anonymous's picture

Well done Tyler, excellent summary. I truly feel no need to read the expanded (expended?) text. (Golf clap)

Mon, 03/08/2010 - 12:27 | 257777 GoldSilverDoc
GoldSilverDoc's picture

Political University:  Basic Politics 101

Lesson One:

Promise anything.  You will never have to deliver.

Lesson Two:

Lie.  Nobody will remember.

Lesson Three:

No matter what happens, if it is bad, blame someone else.



Mon, 03/08/2010 - 12:41 | 257779 Leo Kolivakis
Leo Kolivakis's picture

I had an argument with a buddy of mine who also thinks speculators are "just trying to make a buck". I told him flat out "give me a break, if you don't think the big global macro hedge funds were fed by Goldman et al., then I'll suck you off!" (sorry for being so crude). I added: "...if I were the ECB, I'd wait, wait, wait, and then FUCK these global macro hedge funds so bad that the next time they gang up on a country to exacerbate moves, they'll think twice about it". I am sick and tired of this whole "benign speculators" just doing their job bullshit. These guys aren't half as smart as people think but in the world of finance they're treated like royalty. Give me a break, I've allocated to enough top hedge funds to know that this is pure bullshit.

I've said this before but it's worth repeating. The world of finance has many smart people but very few geniuses. As smart and opportunistic as Soros is - and I do consider him to be among an elite few - he can't hold a candle next to the late Isaiah Berlin, or other intellectuals like Michael Walzer, Charles Taylor or Alisdair MacIntyre. Real geniuses like these are rare gifts to humanity and thank god they don't waste their talent in finance.

Mon, 03/08/2010 - 12:50 | 257804 B9K9
B9K9's picture

Correct me if I'm wrong, but I don't recall anyone claiming the hedgies are either benign and/are smart. They are simply being opportunistic, which then begs the question: what/where are the opportunities?

Regardless of which cliche one prefers, whether it be "it takes two to tango", "where there's smoke there's fire", "chicken & egg", etc, if a situation didn't exist in which to profit, then where would the opportunity lie?

The hedgies are no different than any predator in the jungle. When was the last time you saw film/video of a pride of lions attacking a healthy, young bull? It doesn't happen, because lions happen to like living; instead, they prefer to go after the old, infirm and young.

No one wants to lose $billions of dollars, so hedgies go after the obvious targets: poor countries that got hold of a rich country's credit card and ran it up before the cops showed up. Since their long past glory years, Greece has been a poor country for 2,000 years. They had a nice 10 year run in which to live it up - now they get to go back to being poor.

Rinse, wash & repeat for every country that lived la vida loca - the crazy Ponzi dream. Um, that would be all, except for a select few that still value the basic principles of wealth creation.

Mon, 03/08/2010 - 12:49 | 257806 Assetman
Assetman's picture

What I find just as insidious is the belief that "speculation" is a unidirectional motive.

It's hard for me to buy in to the assumption that buying Greek bonds is considered an "investment" yet selling those same bonds amounts to "speculation".  I would gather their are buckets of both regardless of the financial instrument.

I'm not a big fan of government intervention in markets just to prove a point.  What I am in favor of is removing the safety net on speculators-- so if they, indeed, make a "major fail" moment-- they can fall on their own swords Ref: Long Term Capital Management).  Unfortunately, we are still providing a safety net for a select few willing to take those speculative risks.

Mon, 03/08/2010 - 13:27 | 257861 carbonmutant
carbonmutant's picture


Mon, 03/08/2010 - 13:03 | 257826 Anonymous
Anonymous's picture

Take the other side of the trade if these "speculators" are so dumb and so wrong.

Who said investment or speculation is suppose to be "benign" or "malignant?" [only a social engineer, central planner type who wants to control outcomes -- because they know what is best for everyone]

Who cares whether the market goes up or down?

Mon, 03/08/2010 - 13:06 | 257832 BlackBeard
BlackBeard's picture

You pension retards are lame!

Mon, 03/08/2010 - 13:11 | 257838 Leo Kolivakis
Leo Kolivakis's picture

Yo douche, I'm no "pension retard" who bends over and takes it up the arse from hedge funds and private equity funds. No matter who you were, when I grilled hedge fund managers, I GRILLED THEM, and never accepted paying 2 & 20 for beta or strategies with huge downside risks.

Mon, 03/08/2010 - 13:33 | 257875 hedgeless_horseman
hedgeless_horseman's picture

I'm no "pension retard" who bends over and takes it up the arse...

Now that is just plain false, Leo.  I have heard you say several time that you have a pension for retards who bend over and take it up the ass.

Mon, 03/08/2010 - 13:38 | 257889 Leo Kolivakis
Leo Kolivakis's picture

No, that is for solar short-sellers...OUCH, it's going to hurt in 2010!

Mon, 03/08/2010 - 23:18 | 258705 aus_punter
aus_punter's picture

something tells me you wouldn't mind losing your bet

Mon, 03/08/2010 - 12:29 | 257781 John McCloy
John McCloy's picture

Speculators who take risk banking on success are entrepreneurs and courageous?

Those who speculaute on the inherent myopic views of mankinds relentless greed, corruption and that it is unsustainable are threats?

Or maybe countries like its citizens can learn to practive responsibility and understand that for centuries people have been trying to outrun consequences and to no avail.



Mon, 03/08/2010 - 14:51 | 258002 hbjork1
hbjork1's picture


Mon, 03/08/2010 - 12:34 | 257785 williambanzai7
williambanzai7's picture

The world can only take so much financial souvlaki...

Mon, 03/08/2010 - 12:56 | 257814 Leo Kolivakis
Leo Kolivakis's picture

Too bad the US is ordering extra tzatziki!!!!

Mon, 03/08/2010 - 12:35 | 257786 Anonymous
Anonymous's picture

"Despite the deep reforms we are making, traders and speculators have forced interest rates on Greek bonds to record highs. "

yeah, but they are now buying bitchin' new yachts and cars with the booty.

Mon, 03/08/2010 - 12:36 | 257788 GlassHammer
GlassHammer's picture

The government can't blame itself for hiding the debt and it can't blame the people so it can only blame the people who facilitated it.


Mon, 03/08/2010 - 12:44 | 257792 MarketTruth
MarketTruth's picture

Just another FIAT currency experiencing the reality of what backs it (absolutely nothing). The Euro, dollar, Yen, etc have NO INTRINSIC VALUE (think Zim dollars) when push comes to shove. Right now the Euro is being pushed and shoved and the truth about FIAT currency is being sifted out.

The European and USA central banks share many of the same owners/members that includes the Rothschilds, Warburgs, Morgans, Lazards, etc. These families/entities will do ANYTHING NECESSARY to keep their paper FIAT scheme going. And yes, i truly do mean ANYTHING, like a cornered animal fighting for its life.

Got physical gold?

We do indeed live in interesting times.


Mon, 03/08/2010 - 12:42 | 257795 Grandpa Bear Hug
Grandpa Bear Hug's picture

Grandpa senses yet another White House program;

"Cash for Chamomile" or "Cash for Cumin"

Romer is in the kitchen prepping for the big meeting.

Mon, 03/08/2010 - 12:42 | 257796 Tic tock
Tic tock's picture

Hey, any advice on what do when your girlfriend starts labelling herself as 'single' on the internet?

Mon, 03/08/2010 - 13:36 | 257885 Millivanilli
Millivanilli's picture

Give up all hopes of romance in this life.   She is a pragmatist, and you should be too.   Quietly start separating your assets and don't be afraid to quietly put a few land mines into her life.   This won't end well, so prepare now!

Mon, 03/08/2010 - 13:48 | 257906 knukles
knukles's picture

Well, is she single? 

Mon, 03/08/2010 - 13:28 | 257799 hedgeless_horseman
hedgeless_horseman's picture

To paraphrase the 20-page speech: it is still just the speculators' fault, who are now "threatening not only Greece, but the entire global economy" so burn them all post haste before they can read all the declassified GS prospectuses, and scour the footnotes thus uncovering the truly deplorable state of all European budgets, also please ignore this huge corruption problem we have, it's under control, oh, and it is time our globalization "partners" realize that we are critical in the future of the free world, and bail us out, even though we have repeatedly said we need no steenkin' bail out, or else global financial crisis v2 - here we come. Now show me where Ben Bernanke's office is.

Whoever wrote the above paraphrase is my sarcasm-star twin. 

Mon, 03/08/2010 - 12:47 | 257803 trav7777
trav7777's picture

What a GMFD liar.

The problem is DEBT.  Speculators didn't create all these liabilities.

The problem is OLIGARCHIES who run GOVERNMENTS into massive DEBTS by BRIBING the politicians!  And the people who let them get away with it because those politicians give them a lower middle class lifestyle for no work!

At the end of the day, these oligarchs' money is in freaking accounts in opaque banking regions owned by shell corporations owned by trusts all spread across the Isle of Man, Lichtenstein, Switzerland, the Caymans, etc.

The money the oligarchs took is NOT getting taxed back to pay the debts they got the Sovereigns to go into.  There's a reason the VERY FIRST THING the banking cartel wanted was an INCOME tax.  The masses of serfs working are the surety.  The elites have already planned their way out of the taxes.

In a way they paid them already in the form of laundering cuts to the various shells and nations along the way to wherever the monies' final resting places are.

Mon, 03/08/2010 - 12:48 | 257805 Anonymous
Anonymous's picture

If the speculations are going the opposite way in favor of Greece, he will not say anything.

Mon, 03/08/2010 - 12:50 | 257809 Anonymous
Anonymous's picture

If the speculators are so terribly wrong in their reasoning, take the other side of the trade and you will be wealthy.

How come speculators always get blamed for markets going down in the case of stocks and bonds and for markets going up in the case of commodity prices?? But never get "blamed" when securities are going up and commodities are going down?

Guess folks only don't like certain kinds of speculation.

Mon, 03/08/2010 - 12:52 | 257811 THE DORK OF CORK
THE DORK OF CORK's picture

Not a bad speech but when I read that cabinet meetings are to be televised it confirmed to me that the Greek government has no power and they are only present to provide optics for the people they are supposed to represent.

I like to see the televised cabinet meeting where they are planning a invasion of Northern Cyprus - politics as we see it is a total farce

Mon, 03/08/2010 - 12:56 | 257815 Tic tock
Tic tock's picture

Ooh, first the Pound and the Euro.. nice hammer job

Mon, 03/08/2010 - 13:02 | 257823 Anonymous
Anonymous's picture

Asset Managers getting tarred and feathered in a Liability crisis. Its really ridiculous. Markets haven't failed, leadership has.

Mon, 03/08/2010 - 13:02 | 257824 Anonymous
Anonymous's picture

No. "Speculators" are not threatening the entire global economy. They are merely moving money from the West to the East. But since the "World" is just the "West" in our eyes, hence the "global threat".

Mon, 03/08/2010 - 13:04 | 257829 Anonymous
Anonymous's picture

That is the same speech he gives since December.

Mon, 03/08/2010 - 13:07 | 257834 BlackBeard
BlackBeard's picture

Noooo. Mr. Pamapadrroooo....fools like you who run fiscal ponzi schemes threaten the global economy....

Mon, 03/08/2010 - 13:14 | 257841 deadhead
deadhead's picture

Tyler:  in re the headline about the speech: "Papandreou...."Speculators Now Threaten The Entire Global Economy"

Do you think Dick Fuld has a case here against Papndreou for plagiarism?

Thank you.

p.s. I did not read the speech so I don't know if the Greek PM said "...I'll burn those damn shorts...."


Mon, 03/08/2010 - 13:18 | 257849 Bigdaddydvo
Bigdaddydvo's picture

Despite the deep reforms we are making, traders and speculators have forced interest rates on Greek bonds to record highs.

I wonder fucking why.

Many believe there have been malicious rumours, endlessly repeated and tactically amplified, that have been used to manipulate normal market terms for our bonds.

Yes, I'm sure it's because of "rumors" that you're paying 7% for 2 year money.

Partly as a result, Greece currently has to borrow at rates almost twice as high as other EU countries. So when we borrow 5 billion euros for five years, we must pay about 725 million euros more in interest than Germany does.


OH NOEZ!!!!111 the temerity of those evil speculators who actually want to price in the fact that you're a much shittier credit risk than the Germans are.


We will have a very hard time implementing our reform program if the gains from our austerity measures are swallowed up by prohibitive interest rates.


Pro tip:  The moment your "austerity measures" gain any semblance of credibility the market will cheerfully give you a break on your interest rates.


The same financial institutions that were bailed out with taxpayers’ money are now making a fortune from Greece’s misfortune—while those same taxpayers are paying the price in deep cuts to their salaries and social services.

I'm with you here, fuck them.  But fuck you too George.

Unprincipled speculators are making billions every day by betting on a Greek default. All this may sound a bit familiar to American ears.

Pro tip #2:  Get your shit together and make them lose billions.

Yet unlike the bankers, Greece isn’t asking for a bailout—let alone a bonus.


Indeed, we have slashed the salaries of every single government official. I myself have taken a significant pay cut.  And we have slashed bonuses in Greek banks by up to 90%.


You're a modern day Achillles, George.

The global economy is interdependent. We all suffer or advance depending on how well we deal with these risks.

Your own fiscal profligacy has tipped us off to take a closer look at truly rotten state of other governments' finances, so for this we owe you small debt of gratitude.

There are both immediate and long-term steps we can all take to counteract the forces that are profiting off self-fulfilling bets on failure.


In our modern global economy, and particularly in crises, expectations play a powerful role. Many real numbers are shaped by what happens in people’s minds—or ‘Animal Spirits,’ as Keynes called it.

Quoted for epic LOLtasticness.  Keynes's advice, for what it's worth, almost certainly has nothing to do with your present situation amirite?

Mon, 03/08/2010 - 14:55 | 258014 Cognitive Dissonance
Cognitive Dissonance's picture

"In our modern global economy, and particularly in crises, expectations play a powerful role. Many real numbers are shaped by what happens in people’s minds—or ‘Animal Spirits,’ as Keynes called it."

Did he just say perception is reality?

Mon, 03/08/2010 - 22:47 | 258668 three chord sloth
three chord sloth's picture

Good stuff!

Mon, 03/08/2010 - 13:21 | 257853 RocketmanBob
RocketmanBob's picture

it is still just the speculators' fault, who are phony "wealth" created by over leveraged fiat currency economies that is now "threatening not only Greece, but the entire global economy"


There, I fixed that for him...

Do NOT follow this link or you will be banned from the site!