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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 | 163452 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 | 163506 Anonymous
Anonymous's picture

It's called "kicking the can down the road". The privatization plan will satisfy the foreign creditors for now, but will ultimately screw the Greek public and the country. Just look at any Latin American country for an example.
Greece will be broke again in a decade, and when that happens nothing will save them.

Mon, 12/14/2009 - 17:06 | 163652 Doc
Doc's picture

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

Mon, 12/14/2009 - 14:53 | 163453 Brother Revegen...
Brother Revegend Magoun's picture

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

Mon, 12/14/2009 - 15:01 | 163460 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 | 163498 Anonymous
Anonymous's picture

"Change you can pee on"

Mon, 12/14/2009 - 15:28 | 163501 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 | 163749 Anonymous
Anonymous's picture

^
^
^

WIN

Wed, 12/01/2010 - 01:40 | 767101 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 | 163455 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 | 163561 Anonymous
Anonymous's picture

Anybody holding Greek debt after this had better hope Germany is feeling generous.

Mon, 12/14/2009 - 16:45 | 163612 Anonymous
Anonymous's picture

Beware of Greeks bearing Gilts

Wed, 12/01/2010 - 01:40 | 767103 Karston1234
Karston1234's picture

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

Mon, 12/14/2009 - 15:03 | 163456 SimpleSimon
SimpleSimon's picture

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

Mon, 12/14/2009 - 15:09 | 163471 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 | 163483 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 | 163494 Anonymous
Anonymous's picture

Yes! Time to pound hyg to new highs!

Mon, 12/14/2009 - 15:23 | 163495 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 | 163557 Anonymous
Anonymous's picture

Ah, so he'll sell lots of civil servants, what a good idea. Although can they really be considred an asset, and do they have any value?

Mon, 12/14/2009 - 16:14 | 163560 Anonymous
Anonymous's picture

Ah, so he'll sell lots of civil servants, what a good idea. Although can they really be considered an asset, and do they have any value?

Mon, 12/14/2009 - 16:23 | 163572 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 | 163597 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 | 163621 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 | 163496 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 | 163517 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 | 163518 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 | 163508 Anonymous
Anonymous's picture

baklava?

Mon, 12/14/2009 - 19:24 | 163869 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 | 163534 Anonymous
Anonymous's picture

We'll see how Greek bonds do tomorrow, and Greek banks for
that matter. The banksters will simply announce payroll hikes for themselves. Whadda joke.

Mon, 12/14/2009 - 16:05 | 163550 Anonymous
Anonymous's picture

Greek stock market soon to hit new highs.

Mon, 12/14/2009 - 16:10 | 163556 Anonymous
Anonymous's picture

OT:

A kudos for Kitco (www.kitco.com).

I sold some glod to Kitco and delivered to their NYC (Inwood) collection location on Dec 1 (the prices were high approx 1200). Somone messed up and didnt inform that I had delivered. I kept following up with phone calls emails. Finally on Dec 9th I spoke to lady named Sileh who was extremely helpful, tracking down the delivery and keeping me updated as to what was happening.

By then the prices had dropped to 1130 (approx 5%). I thought would have to do a song and dance to get the Dec 1st prices. There was no fuss and transaction was completed at the Dec 1st prices.

So, a kudos and my recommendation of www.kitco.com for your glod transactions.

sbarrkum

Mon, 12/14/2009 - 16:53 | 163627 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 | 163559 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 | 163604 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 | 163628 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 | 163631 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 | 163778 Anonymous
Anonymous's picture

Greek Governments Since 1963

63-65 George Papandreou

65-67 Chaos

67-74 Military Dictatorship

74-80 Konstantinos Karamanlis

80-81 George Rallis

81-89 Andreas Papandreou (son)

89-90 Chaos, 3 failed elections

90-93 Mitsotakis

93-96 Andreas Papandreou (son)…died

96-04 Konstantinos Simitis

04-09 Konstantinos Karamanlis (nephew)

From Oct 09 George Papandreou (grandson)

Mon, 12/14/2009 - 20:04 | 163917 carbonmutant
carbonmutant's picture

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

Mon, 12/14/2009 - 22:55 | 164094 Anonymous
Anonymous's picture

chaos + quasi-family government.

How did these gyro makers ever get into the EU?

Mon, 12/14/2009 - 21:03 | 163979 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 | 1078205 maher9897
maher9897's picture

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Mon, 12/14/2009 - 23:01 | 164101 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 | 164287 Anonymous
Anonymous's picture

The prime minister kept on mentioning "Green Development", about 11 times at least in his speech. I smell Soros somewhere.

Tue, 12/15/2009 - 04:13 | 164289 Anonymous
Anonymous's picture

The prime minister kept on mentioning "Green Development", about 11 times at least in his speech. I smell Soros somewhere.

Tue, 12/15/2009 - 07:24 | 164317 Anonymous
Anonymous's picture

should have shot the bankers

Sun, 03/20/2011 - 07:18 | 1078208 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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