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Greeks "In Over Their Heads In Debt" Means Non Performing Loans Poised To Surge
A Bloomberg TV report looks at a troubling and all too expected trend developing currently in Greece: namely the overabundance of easy credit provided to Greek consumers to fund unprofitable business, and which loans the recipients have no intention of every paying back. Sounds familiar - the ECB has now directly taken a page from the official PBOC playbook on how to keep the ponzi dreams alive for one more day. As the narrators points out simply: "more and more Greeks are finding themselves unable to pay back their loans." The surge in NPLs is demonstrated by the chart of loan performance over the past two years, comparing the 5% in NPLs in 2008, jumping to 7.7% in 2009, and hitting 8.2% at Q1 2010. And since banks are all about hiding the true impact of deteriorating assets, one can bet the true level of NPLs is will in the double digit range. And guess what - all these eventual charge offs will have to be funded by the ECB-IMF rescue mechanism, which means that sooner or later America, via its primary contribution to the IMF's various rescue facilities, will end up having to bail out the Greek debtor class. And as austerity is only expected to make things worse, the only possible (flawed) resolution is to do what the Cajas in Spain did: a massive wave of consolidation, so that those bigger banks provide some capitalization buffer for the smaller insolvent firms, until such time as the entire market is comprised of just a few TBTFs, which will nonetheless still be in need of bailing out.
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Tonight we default in Hell!!
Eerily similar to the US!
Easy to make fun of us, little Greece, huh? Lets you all ignore the fact that our TOTAL debt, you're just gonna issue in the next TWO weeks, huh? :Ooooooooo :P
Very Clever Bugs! The creditors of Greece are about to get it good and hard, Greek Style.
Presumably one of those distant CBs is the Fed !
http://israelfinancialexpert.blogspot.com/2010/08/kiosks-and-taxis-in-grip-of-greek-debt.html
the fed will end up owning all the newspaper stands and taxies in athens. better than what they have now i suppose.
This is DEBTAR !!!! Bitchez !!
Argentina...
Chronology of the 2001 Argentine Economic Collapse
http://fpc.state.gov/documents/organization/8040.pdf
Have some wine to go with it.
Put the deadbeats in an olive press and squeeze.
Is this report about Greece or the US housing and mortgage (FANNIE AND FREDDIE) situation????
lol
Come oooon, how long does it take for an empire to fall again?
The Persian empire was doing fine until they invaded Greece.
It's funny because it's true.
These day, you need to leave room for at least 5 sequels so why blow it already?
And the deflationists would insists that the Euro will go UP on this news(DEFLATION)
So lets see if the Euro goes down(INFLATION) or up.....
It is mildly inflationary for Europe since the Euro will fall in the short term. Prices will catch up (drop) to the fact no one has any Euros and be deflationary. It is deflationary for the US short and long term as the dollar rises.
REMEMBER: The next wave of USA-based loans that imploded a few years back is once again peaking high in September. So expect more of the same beginning in November and December when the far higher loan payments (resets) take full effect.
Jingle mail early 2011, count on it.
Easy credit is a destroyer of economies. Consolidating the banking industry only makes sense if you want total control. Just look at the way media has consolidated and the effect it has had .
The one and only responsible for Greece's default is Papandreou.
This autumn everything will collapse. Prepare.
Greece will never be able to pay back anything, period. Eventually they will have to default and in turn so will other countries and banks.
Actually the lazy and irresponsible Greeks are doing the only sensible thing in the current environment - they are saying a big "no, and fuck you very much" to both austerity measures and paying back on loans that were far too easy. Now if only the rest of the world took on a similar attitude so that the out of hand debt and resulting problems would be shouldered not by ordinary people, but by the brokers and creators of said problems.
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