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Greece Enters Twilight Zone As It Announces 90% Banker Bonus Tax Plans, Expectations For Sub 3% Deficit By 2013

Tyler Durden's picture





 

Developing story as highlights from George Papandreou's speech become available. Some notable snippets include his desire to cut deficits below 3% of GDP by 2013 (good luck), a cut in debt sovereign starting in 2012, and, most notably, a limitation on banker bonuses in the form a 90% bonus tax.

More headlines: Greek PM says will privatise companies not essential to the state, will proceed with state asset sales

Goodbye Greece

 


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Mon, 12/14/2009 - 14:52 | Link to Comment Internet Tough Guy
Internet Tough Guy's picture

Set unrealistic budgetary goals. Check.

Scapegoat the bankers. Check.

Mission accomplished. Go to commercial.

 

Mon, 12/14/2009 - 15:36 | Link to Comment Anonymous
Mon, 12/14/2009 - 17:06 | Link to Comment Doc
Doc's picture

A decade? Me thinks we found an optimist on ZH.

Mon, 12/14/2009 - 14:53 | Link to Comment Brother Revegen...
Brother Revegend Magoun's picture

I'd also add 90% tax for dividends. Yes!

Mon, 12/14/2009 - 15:01 | Link to Comment Internet Tough Guy
Internet Tough Guy's picture

How about a 90% tax on governmental stupidity? That would balance the budget in about 5 minutes.

Mon, 12/14/2009 - 15:24 | Link to Comment Anonymous
Mon, 12/14/2009 - 15:28 | Link to Comment Brother Revegen...
Brother Revegend Magoun's picture

The idea is good. Don't see any easy way to implement it. Mmm?

Mon, 12/14/2009 - 18:16 | Link to Comment Anonymous
Wed, 12/01/2010 - 01:40 | Link to Comment Karston1234
Karston1234's picture

Just continue writing this kind of post. I will be your loyal reader. Thanks again.
education degree | fire science degree | law degree

Mon, 12/14/2009 - 14:53 | Link to Comment Hondo
Hondo's picture

They've gone stupid.  I like to see the impossible details of these sound bites.  Anyone who could possible believe this nonsense and invest in any of this crap as a fiduciary and loses money should be sued to oblivion.

Mon, 12/14/2009 - 16:15 | Link to Comment Anonymous
Mon, 12/14/2009 - 16:45 | Link to Comment Anonymous
Wed, 12/01/2010 - 01:40 | Link to Comment Karston1234
Karston1234's picture

Thanks for sharing and keep up the good work..
management degree | nursing degree

Mon, 12/14/2009 - 15:03 | Link to Comment SimpleSimon
SimpleSimon's picture

Greeced up bankers -- hope they know to speak greek....

Mon, 12/14/2009 - 15:09 | Link to Comment youngandhealthy
youngandhealthy's picture

Good job Greece....thats the way...no more money for nothing and the chicks for free...

Mon, 12/14/2009 - 15:15 | Link to Comment Racer
Racer's picture

Watch for the dollar to soar as world banksters transfer themselves to the US where they have guaranteed unlimited backstops and minimal taxation

Mon, 12/14/2009 - 15:23 | Link to Comment Anonymous
Mon, 12/14/2009 - 15:23 | Link to Comment CreditcalMass
CreditcalMass's picture

"Greek PM says will privatise companies not essential to the state, will proceed with state asset sales"

I want to believe this isn't true... :sigh:

Mon, 12/14/2009 - 16:11 | Link to Comment Anonymous
Mon, 12/14/2009 - 16:14 | Link to Comment Anonymous
Mon, 12/14/2009 - 16:23 | Link to Comment carbonmutant
carbonmutant's picture

Of course privatization requires buyers.

What's a Greek company that the government doesn't want really worth?

Mon, 12/14/2009 - 16:38 | Link to Comment Handle with care
Handle with care's picture

State companies are often monopolies or quasi monopolies.

In addition they have generally been run for decades with a different mindset than private companies in that infrastructure was built to last generations rather then to make it only to the next bonus period.

So its easy for the private buyers. Price it based on its current low profitability, as soon as you take over slash cap ex spending and let the infrastructure run down. Point to run down infrastructure as a reason to raise fees (presuming there's a regulator to limit their exploitation of their monopoly position.)

Award yourself enormous bonuses and issue huge dividends.

When services start crumbling ask for government subsidies and raised fees to users.

They've done this over and over again and we see the water, electric, sewerage, rail, bus services, mail and many other services deteriorate as they suck out the money as private compensation and dividends that otherwise would have gone back in to the service.

I'm no socialist, but the problem with all these privatisations is that they've never introduced the competition that prevents it and instead have put in a regulator who is captured in no time, and often the service is a natural monopoly for which no real competition can be put in anyway. (Unless you think the private sector is going to rush to put in an alternative water and sewerage pipe to your house)

Mon, 12/14/2009 - 17:14 | Link to Comment carbonmutant
carbonmutant's picture

I like the first part of the plan (owning foreign monopolies and government subsidies). It's the second part; raising prices in a market that can't afford current prices and getting subsidies from a bankrupt government that seems a bit dodgy...

Mon, 12/14/2009 - 15:24 | Link to Comment GoldSilverDoc
GoldSilverDoc's picture

So.... the banksters will just forgo the bonuses.  And raise their 'salaries' to match the previous bonus.  

 

Is "intelligent politician" an oxymoron?

Mon, 12/14/2009 - 15:43 | Link to Comment drbill
drbill's picture

More likely the two words are mutually exclusive in the same universe. If the two ever did combine it could be the end of life as we know it!

Mon, 12/14/2009 - 15:43 | Link to Comment Gilgamesh
Gilgamesh's picture

Why not just structure the tax similarly to others, where the bank co pays the tax (not the bankster receiving it).  That way shareholders take it; and nothing would change... heck, they could probably do a secondary stock issue just to pay the Banksters Bonus Tax, and have it happily oversubscribed.

Mon, 12/14/2009 - 15:37 | Link to Comment Anonymous
Mon, 12/14/2009 - 19:24 | Link to Comment SWRichmond
SWRichmond's picture

So you're suggesting they hold a bake sale and invite Europe?

It might work.

Mon, 12/14/2009 - 15:53 | Link to Comment Anonymous
Mon, 12/14/2009 - 16:05 | Link to Comment Anonymous
Mon, 12/14/2009 - 16:10 | Link to Comment Anonymous
Mon, 12/14/2009 - 16:53 | Link to Comment DoChenRollingBearing
DoChenRollingBearing's picture

I check kitco.com every day re gold and other PM prices.  Nice to hear that they are trustworthy in doing business (even if there was a small glitch).

Mon, 12/14/2009 - 16:14 | Link to Comment carbonmutant
carbonmutant's picture

"Salaried workers will not pay for this situation: we will not proceed with wage freezes or cuts. We did not come to power to tear down the social state," - Papandreou at Friday's EU summit

 

Mon, 12/14/2009 - 16:41 | Link to Comment A Man without Q...
A Man without Qualities's picture

"Greek PM says will privatise companies not essential to the state, will proceed with state asset sales"

Ok, so who wants to buy a bunch of loss-making enterprises crammed full of cronies earning Euro 100k pa plus fat benefits?  Probably worth adding that all the connected parties will receive bonuses, and the bankers will earn juicy fees for the sales.  Given what we know about Greek accounting habits, you need your head examined if you believe the books...

 

 

Mon, 12/14/2009 - 16:53 | Link to Comment omi
omi's picture

for some reason, I've read it as Green Peace.... I was confuzed for a bit there.

Mon, 12/14/2009 - 16:55 | Link to Comment Robert Oak
Robert Oak's picture

Original blog post last night with much more detail as well, here:

5 minutes 'til Midnight

 

Mon, 12/14/2009 - 18:29 | Link to Comment Anonymous
Mon, 12/14/2009 - 20:04 | Link to Comment carbonmutant
carbonmutant's picture

 What is this... like Chaos every ~20 years?

Mon, 12/14/2009 - 22:55 | Link to Comment Anonymous
Mon, 12/14/2009 - 21:03 | Link to Comment Leo Kolivakis
Leo Kolivakis's picture

Bwah! As long as Greeks have Mykonos, they'll inflate their debt problems away:

 

Sun, 03/20/2011 - 07:16 | Link to Comment maher9897
maher9897's picture

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Mon, 12/14/2009 - 23:01 | Link to Comment SWRichmond
SWRichmond's picture

OK, I'll do it:

http://www.youtube.com/watch?v=a1sf2CzEq0w

I'm fallin' down a spiral, destination unknown
A double cross messenger, all alone
Can't get no connection, can't get through, where are you

Well the night weighs heavy on his guilty mind
This far from the border line
And when the hitman comes
He knows damn well he has been cheated
And he says

Help, I'm stepping into the Twilight Zone
The place is a mad-house, feels like being cloned
My beacon's been moved under moon and star
Where am I to go now that I've gone too far


 

Tue, 12/15/2009 - 04:12 | Link to Comment Anonymous
Tue, 12/15/2009 - 04:13 | Link to Comment Anonymous
Tue, 12/15/2009 - 07:24 | Link to Comment Anonymous
Sun, 03/20/2011 - 07:18 | Link to Comment maher9897
maher9897's picture

I will always give a nice thrust look in to you from my bookmark feed.

www.micro-tronik.com

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sun1's picture

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sun's picture

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sun's picture

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