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Harbinger Of Imminent Default? Germany's Schauble Says Would "Regret Letting Euro Country Default"
Probably not the best words to use when trying to diffuse a ticking time bomb.
SCHAEUBLE SAYS WOULD REGRET LETTING EURO COUNTRY DEFAULT
SCHAEUBLE SAYS EURO FOUNDERS COULDN'T IMAGINE SOVEREIGN DEFAULT
The market should dutifully ignore this if it knows what's good for it.
h/t fiatcurrency
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If they are thinking default is an option then they are hiding some monsterous reality they are scared of being discovered and would rather Greece default.
+1....reminds me of the Aspen forest in Utah, over 100 acres of the same root system....but Aspens are much nicer to look at.
Gotta agree with Mako. Systems built on compound interest, and subject to the added weight of bloated, entitlement-driven governments, have but one, sad future.
The "monsterous reality" is that there is an essentially infinite number of irresponsible deadbeats in the world. The line has to be drawn somewhere. Better sooner than later. Appeasement of extortionists never ends well. As Casey Stengle liked to say "You can look it up." Consult any history text for Chamberlin, (Lord).. aka Quisling idiot.
Look at it this way. A thief who is caught redhanded is always willing to negotiate. He will eagerly agree to steal only half your belongings tonight, because he can and will return as soon as you have restocked the larder.
Or you can run the experiment yourself. Just start feeding stray cats and see what happens over time. Try the Dr. Phil test. How's that workin out for ya?
The polite term here is "Moral Hazard".
The standard English version is "Gimmee, gimmee, gimmee."
Pounding a serial offender into the ground can be wonderfully instructive, or should be follow the 22 year old slow motion train wreck in Japan?
"I got it! Let's tie ourselves to as many sinking ships as possible."
Mein own people are very stubborn.
Thanks be to god.
Go ahead, Germany, bail 'em. Watch what happens.
German stance towards Greece is quite clear to me. They want to scare Greece into either reforms or leaving the eurozone.
I think it must be a requirement to have verbal diarrhea if you are a EMU politician talking about the Euro recently! What was SCHAEUBLE thinking? Even if he/Germany have decided to let Greece go, why telegraph it like that? Unless he is specifically trying to cause Greek default -- why would he want that?
No regrets, baby, no regrets.
As Dylan Grice put it "Why should German taxpayers who retire at 65 bail out Greek tax avoiders who retire at 50" or words to that effect.
Greece is trying to borrow money to pay the interest on their debt. I see no reports of any action taken by Greece to reduce expenditures or get their spending under control. Nada. Zip.
Greece is the national equivalent of using one credit card to pay off the interest charges on another credit card. Since this is getting expensive they want Europe to give them another card. If I didn't know these were Greeks and Germans I'd figure they were all Americans. Same MO. Same outcome.
This might be a better word:
Schadenfreude (pronounced /????d?nfr??d?/ Audio (US) (help·info), German pronunciation: [??a?d?n?f????d?]) is pleasure derived from the misfortunes of others.[1]
[deleted - wrong context]
Greece must default! There is nothing the EU can do but "extend and pretend" by giving Greece more money with no hope that any of it can ever be repaid.
Let the market force Greece into default or throw good money after bad.
Greece (as a society) must face reality. The gravy train has jumped the tracks and life going forward will be different.
The US is about 5 years from the same realization (believe that the CBO estimate of when we hit 20 Trillion in debt. A simple calculation shows that at 5% interest, that takes 1 trillion for debt service. That's nearly 50% of govt revenues. Raise taxes all you want (Greece has high tax rates). Nobody pays their taxes in Greece and they won't pay in US. When marginal rates get too high (we're about there) the marginal taxable income disappears. Increase taxes on corporations, they move to other countries. Increase taxes on rich, they hide income (and are becoming more willing to leave the country). You can tax small businesses to death but that just kills the main job creators.
Greece must default! The US will default! (one way or another). Life is going to change dramatically for all western societies. Can they remain "free" under these circumstances and facing this austerity? Good question. Today's frontrunning had an article about US becoming Argentina. It will happen in your lifetime!
^^ so much win
How do you say systemic risk in German?
Systemisches Risiko
Fettige Systemisches
A view from Europe: Schaúble was in hospital when
he gave an interview to Der Spieggel saying that
"We cannot allow Greece to turn into a second Lehman brothers", which
came out in the printed Spiegel monday,
http://www.spiegel.de/international/europe/0,1518,689766,00.html
Immediate storm followed, with the matter in the
Bundestag tomorrow. W.Múnchäu,from the FT, that
Greece will default, but not this year.
The whole mess there was supposed to cost
the German texpayer slightly over 8 billion euros,
Axel Weber revised the numbers on the upside, so
the fate of the Euro is at stake, with the IMF
and the UE. Except, either the Bundestag or the
German Constitional Court in Karlsruhe could
de facto "veto"the German part of the bailout.
Tolle Sachen, as they say over there...