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Now That The Banker Bailout Plan Is Set, Here Are The Greek Islands About To Hit Ebay And Fund Another Record Wall Street Bonus Season
The description of the Greek bailout plan in the NYT has just one salient paragraph. Here it is: "With great reluctance, European governments have come to the conclusion that an additional €60 billion now, while politically unappealing, would be less costly than the unquantifiable public funds that would be needed if a restructuring of Greece’s debt produced a Lehman Brothers-like contagion that spread not just to Portugal and Ireland but possibly Spain and the financial system as a whole." Ah yes, with "great reluctance" European governments, bought and purchased by bankers, have decided to bail out their sources of capital. As for the conclusion, the only thing that matters is how long before European taxpayers realize that once again they are the mark in this latest pathetic attempt to ignore reality, which incidentally for those who are clueless, is the following: "“Greece’s G.D.P. is already declining and now the government will need to cut another €7 billion in spending,” said Jason Manolopoulos, who manages a hedge fund based in Athens and Geneva and is the author of “Greece’s ‘Odious’ Debt: The Looting of the Hellenic Republic by the Euro, the Political Elite and the Investment Community.” “That is only going to make the debt to G.D.P. figures worse,” he said. “There is no getting around it: Greece is insolvent.”" So while the bankester cartel is dead set on bleeding the last drop of hemoglobin from the petrifying Greek corpse, here, courtesy of the WSJ is what will soon be purchased by special purpose entities controlled by the same banks that are just now getting bailed out.
But before that, here are the details of the latest brilliant "Kick The Can Down The Road" plan:
While the agreement for as much as €60 billion, or $86 billion, would, in theory address Greece’s need for cash this year and next, it puts off for the time being a restructuring, hard or soft, of Greece’s mammoth debt burden
At the deal’s heart would be an informal understanding that the private sector holders of Greek government bonds might be persuaded to roll over their debts, or extend new loans at the time their older obligations come due.
By taking on more dubious Greek risk — backed by new funds from Europe and the International Monetary Fund — exposed banks would not just step back from the precipice of a “haircut,” or a forced loss on their bonds, they might also hope that in another two years, Greece will be in a better position to repay its debts in full.
The expectation that Europe will again come to Greece’s rescue bolstered both the euro and equity markets on Tuesday. Yields on Greek 10-year bonds have dropped sharply, to 15.7 percent Tuesday from a high of 16.8 percent last week.
The plan may be new, but the idiots in charge are the same:
“Restructuring is off the table,” said a senior official in the Greek Finance Ministry. “For now it is all about growth, growth, growth.” This person, who spoke on condition of anonymity while the talks continued, said an announcement from the European Union, the I.M.F. and the European Central Bank could come as soon as Friday or early next week.
What growth? Can someone explain how the country will generate "growth" and, far more importantly, cash, when it is selling off assets?
And for details on that we go to the WSJ:
Now might be your chance to buy that portion of a Greek island you have been coveting.
As part of Greece's privatization plan to raise cash to reduce its mountain of debt, the national government is preparing to sell as much as €30 billion ($42.9 billion) of public property. It is still early in the process, but future sales are likely to include assets ranging from the government's stake in the Mont Parnes Casino resort in Athens, hotels, and even a concession to develop a luxury resort with a world-class golf course on the island of Rhodes.
The Hellenic Public Real Estate Corp., the government body that manages public property, has a list of about 75,000 individual government-owned properties. The corporation has appointed National Bank of Greece SA to lead a consortium of advisers who are now preparing to sell an initial portfolio of 20 to 30 properties, the first of which could be put on the market in the next few months, according to Aristotelis Karytinos, general manager of the real-estate division at National Bank of Greece.
The International Monetary Fund, in its latest report on Greece, estimates that as many as €15 billion could be raised through real-estate sales. Mr. Karytinos says expected proceeds from property sales or leasing is now estimated at between €15 billion and €30 billion. The first step is to sift through the long list of public property, identify the best real estate, and resolve any legal issues to ensure that the property is able to be fully developed by investors.
There is a "plan" to make the sale of the country to the same creditors that the country is bailing out palatable:
"Our strategy is to award concessions, long-term leases of 30 to 40 years, depending on the individual property, but the government will retain ownership of the land," Mr. Karytinos said. "The first properties should come to market in the next few months, but certainly by the end of the year." Long-term leases are attractive partly for political reasons.
Development by foreign investors would be more palatable for Greek
citizens if the underlying land remains in government hands.
Luckily, the Greeks are idiots, and will never figure outthis bait and switch. But don't worry: Santorini will be sold As Is; with a 7 day overnight FedEx ground (or boat) delivery option. Sold to Goldman. No concessions there. Especially since nobody will agree to the concession route:
"It is too easy for tenants to break leases in Greece, and that adds too much risk to the transaction," says Alistair Calvert, a London-based partner with Northcliffe Asset Management Ltd., an investment firm specializing in sale-and-leaseback transactions.
So now that Germany has sacrificed it ruling class to banker interests, and Europe knows all too well just who is calling the shots, the ball is back in Greek court:
Whatever the next step is in Greece's plan to privatize public real estate, all eyes will be on how Athens handles the first deals that come to market.
"It is extremely important that they get the first couple of projects right," Ms. Agapitidou said. "If the first projects go well, the interest of international investors will increase."
Oh they will get the first projects fine, all right. After all it is JPM, GS, BAC, Citi, UBS, RBS, RBC, CITI, DB et al that are preparing the CIMs that will be ultimately presented to, and used by, individuals at JPM, GS, BAC, Citi, UBS, RBS, RBC, CITI and DB.
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We have already watched this movie before. This rings deja vu of Dubai crisis.
In case you forgot..
http://www.guardian.co.uk/business/2010/mar/04/greece-sell-islands-german-mps
In accordance with my PM investment themes, I wish to place a bid for the Silver Moon Bar in Ag. Stefanos.
For the "right",( IMF discounted :)) ) price, I'll buy Zakynthos any day!
Heh heh heh...
Please excuse my naivete, but how do I short Greece and the EUR?
Here's a link to a short article on how to short the EUR through an ETF:
http://www.marketwatch.com/story/euro-etf-provides-hedge-against-us-dollar
As a reformed deflationista - I would argue the only short that makes sense with all the money printing is to buy gold, silver, and other applicable hard assets. I have serious questions about whether you'll get paid as a short when the SHTF, and even if you do, it'll be in confetti currency.
The eft EUO is a Euro short fund.
But of course the Euro is surging with all of these wonderful "developments."
so when it's all said and done and the pigmen own all of Greece's best assets I should go on vacation there spending my hard currency knowing that the proceeds will funnel back to the pigmen ? That sounds as enjoyable to me as booking a vacation to the BP spill platform. Iceland is sounding more and more like a vacation oasis to me.
Why do you all blame banks?
It takes a government to fuck things up so badly that even the proles are moved to outrage.
Banks didn't bail themselves out.
You're right, we shouldn't despise Frankenstein, we should despise Dr. Frankenstein..
I'm a deep believer in the goal of free markets and capitalism. But, my friend, these are Not banks. They are corporatized weapons of mass looting and deserve no defense. End the iBanks, end this .gov
False dilemma. The choice is not necessarily "either-or".
There is no problem that is so large, so onerous that government cannot make it worse."
paraphrased from Henry Morgenthau
"Any problem can be solved with a sufficient application of high explosives."
I'm gonna remember that when they ask me how to fix welfare.
Project Mayhem...
Actually, a belt fed weapon is the ticket.
Hilarious. Like I said. No restructuring. Greece will be entirely looted, and Greeks will never revolt, because if they were going to do it, it would have already been done a long time ago.
Pigmen: 1
Goldbugs: 0
Partially right
Pigmen:1
Idiots:0
And their gift to the people of Greece...a higher oil price.
Place your bets for complete Greek turmoil (and the rest of Europe)
Correction Hamy:
Pigmen: 1
Goldbugs: 1533
Fiat:Gold = 1:1,533
Nice call Hulk...
The world will revolt, and the greek will be among them. Just wait and see.
Don't laugh. Soon the US will be trying to sell a bridge to Brooklyn. Many times.
Fractional bridge investment theory?
...So now that Germany has sacrificed it ruling class to banker interests, and Europe knows all too well just who is calling the shots, the ball is back in Greek court...
The European banks are the aristocracy, the oligarchs, the nobility, etc. The old royal families don't own businesses, they own european banks or they are invested in hedge funds (Soros). The major problem is too many small european banks competing for business, prestige, political influence, etc...
This unravelling of competing interests should be interesting.
ok im stupid what is growth
When do they allow the US bailout?
O/T, which repubes are voting yea on the ceiling raise?
Update: was 2 for yea, now just 1.
Update 2: that one got bitch slapped into NV
Asset sale..great idea....Kali can sell Catalina Island and nobody would notice. Alcatraz next. Store this strategy into memory for Jerry's garage sale. Start with the islands.
BI-WINNING
Although the Acropolis has seen better(?!) days, do not be surprised if it undergoes a massive `revamp` (we`re talking full auto-shading glass to reflect the fierce Greek summer temperatures, complete with environment-caning air-con. Also, Greek, Hungarian and Russian `hotties` will be brought in to walk around as toga-clad domestic servants. No doubt tasteful Roman-style baths will also be installed (powered by genuine Greek indentured wage-slaves to keep the hypocausts up and running); there will be other sundry luxuries in keeping with the whole `antiquity` theme).
Group bookings welcome at $10,000 per person per night; special discounts for Bilderberg members.
Does the Greek government "own" any islands?
What a great question.
Does the Greek government work for the people? Which would mean the people own the islands. Right?
The only change I'd suggest is to substitute the term "European politicians" in place of "European governments". It's the greed of individual politicans that is, by far, the great destroyer.
A fine point, darteaus, but perhaps a valid one. Ambrose Bierce defined politics as "the conduct of public affairs for private advantage." As for greed and perfidy at the individual level, that's been the rule ever since Adam and Eve got dressed.
Can this be blocked by the true Finns or other dissenting parties?
When nice guys like me feel like vomiting, it's already to late. So genocide only counts if there is blood eh?
Bullshit. The EUR evil is a takedown of culture. It is a takedown of individuals. It is a takedown of free people. Don't let yourselves be raped like this. We would have helped you in a better time. I so adored and envied you sweet people in Amsterdam and Wiesbaden. I was in awe of your maturity. There I was, a dumb punk American soldier. Had no idea of empire. I was just 22 years old.
I aplogize and I hope you fight back.
I need to go take a shower now. Yuk!
No kidding. You need to wash the shit off your nose. Could you be any lamer?
You should join the ritual wash because you have shit all over you, can't you smell it?
I don't smell like shit.
That is your upper lip. Fix yourself.
You cannot smell anything that means you have some problems. Think about it.
I smell you. Smells like ass.
You can smell me? You must be an expert on sniffing asses. Good luck on your carrier, have more asses to apply your senses to.
I'll accept your lameness as surrender.
How's being a total penis going for you?
Chicks dig me. What other measure is there?
Really? They're going for you? I have to believe it if you say so
Jealousy is unbecoming.
"chicks dig me."
...you mean like "real chickens" don't you!!!?
Men who want to succeed with women hear about this "alpha male" idea, and decide that they need to become more "alpha."
They figure that if they can just be the "top dog" among men, they’ll get the women they desire.
And they figure that the way to do this is to push around other men, act tough, and to generally become a world-class jerk.
They think a lot about "being alpha" and "appearing alpha." They worry about it. They argue about it on internet discussion boards.
But it’s all a trap.
You see, if you spend your time worrying about being "alpha," and have tried to push other guys down...
Then you are NOT an "alpha male."
There’s an actual, scientific name for what you’ve become. That name is:
"Alpha wanna-be."
Roll on than!
Just wait for the social turmoil, this could start in Germany. The IMF/ECB have sealed Europe's fate: Political/social upheaval
This Greece bailout redux is going to backfire so intensely
We do need an upheval, an awakening of some sort. So far the european protests have been mainly the unemployed demanding more benefits and government workers demanding more money and more security. When are the productive members of society going to wake up? `we` are paying more and more tax to support the banks and the benefit recipients. Those in the upper levels of the corporate world seem nicely isolated, IIRC the average pay rise of a FTSE100 dirctor rose 23% last year, the average pay of FTSE100 employees did not rise at all. Small and medium business owners are still the largest employer in the UK, and I can tell you - we are getting killed. In the last quarter 71% of my business profits after operating expenses went to the government! I am at the point where the burdens of business in this environment do not really justify the paltry rewards. We have been promised some austerity, but where is it? The coalition government is increasing the deficit not decreasing it. In Colchester (1 hours train ride from the city of London) the Ferrari dealer had sold his allocation of cars for 2011 by March! yet the town centre is full of charity shops and vacant stores. I do not know what the answer is....but a system that rewards those who are productive and a MUCH smaller government would be a start. Unless there is an awakening soon and a constructive change we will see an increasing exodus of entrepreneurs from the UK - right now the life of a nomadic yachtsman looks mighty atractive.
It doesn't matter if it is the same idiots or not. The jobs are assigned from the same idiot box. Farce is what this entire episode is, nothing more.
It really is. We're seeing the re-surfacing of old Franco-Prussian jousting.
I think France will hurt first because it is weak at the top. The battle is going to be fascinating for sure.
ORI
http://aadivaahan.wordpress.com/2011/05/26/the-video-trailer/
My dear American friends - when are you all going to tell your fellow Americans that you guys pay the biggest share of all IMF bailouts? You are going to have to educate your masses if you want change......and I appreciate that ZH is doing a valiant effort in educating but unfortunately, the "masses" don't read ZH.
I know it's hilarious, US taxpayers backstop the IMF, Germany backstops ECB/EU loans. These insane academics are going to send us into a huge backlash...My bet Germany going all nutso. China slowdown last 6mths of 2011 it will take out Germany's export market.
Dr Doom (Faber and others) should be counting down the clock...faster now.
Strangely, the masses don't give a flying fuck if Europe dies in fire.
I am conflicted. I still want to do a cathedral tour.
Other than that, Europe can die in fire for all I care.
Yes, you are conflicted and I can see you want to find your way. You can find cathedrals close to you, in Israel, so don't worry, you can do your tour.
Europe is closer. Hopefully, the Caliphate won't burn them.
For now you're burning Caliphate so don't worry.
Could you translate that into English?
Got clusterfuck ... ?
http://www.youtube.com/watch?v=tIPyn3Dzj_k
The "masses" don't read, period. The worst school system in the developed world is part of the plan...
well now, they teach them to pass test. and if they don't pass high school, they are given a certificate of attendance. but, in order to do this great feat, the school districts require increasing amounts of taxes to be paid by the sheep. however, a crack has appeared in the dam now. texas is about to pass a $4 Billion dollar reduction in school funding. this is sending shockwaves through the educational bureacracy, a place that has had it easy and good for so long, now, the goose that laid the golden egg is dying.......and they don't like it one bit......but that 4B, is just a starter for this year alone. next year, more cuts will have to be made. any tax increase at this stage that is proposed by any politician of any party is political suicide.......
The documentary "Waiting for Superman" is worth watching. I did not find it to be an optimistic film...
"Waiting for Superman" is completely fallacious logically invalid propaganda...
Decentralize the system and fire the vast majority of do nothing $100k+ administrators...
Think of the layers of management. Here in lies the waste:
US Dept. of Education
=> State Dept. of Education
=> County Office of Education
=> Local School Board
=> District Superintendent's Office
=> School Principal & Staff
=> Teacher and students...
Since when does a student need 6 layers of management to learn????
With all the laid off teachers there is an excellent resource of quality educators to assist you with your home schooling endeavours...
You might have noticed that when things start getting tight, they threaten to lay off actual teachers, not the second vice principal at the high school.
In large states public education will always be mediocre, for the same reason that in large kitchens the cooking is usually bad.
Friedrich Nietzsche
Good point. And $100k is peanuts once you break into the county school administration level. For some real eye-opening insanity, find out just how much your local county school administrator makes.
Here in my county in central VA, the position pays $295k, with an additional $12k annual car allowance. Cuz you know, kids don't learn good unless the head county honcho can drive an 8-series BMW completely at taxpayer expense. The base salary alone is more than the salary of the state governor! LMAO! You can't make this stuff up!
Oh yeah, almost forgot. The head county school honcho has between 4 and 5 deputy assistant administrators, the 'poorest' of which draws $175-180k, with a measly $6-8k annual car allowance (compensation goes up from there).
Seriously, you owe it to yourselves to check this stuff out in your local area. It's quite the outrage-inducing exercise. I can only imagine what these figures are like for the same positions in the northern VA counties, where DC-metro creep has festered and metastasized.
Watch and learn how the game is being played. We're next. Gold confiscation, ala 1933, was just tinker toys.
If this liability problem grows, spreads to other nations , social order will decay. Order will not be restored without The world exploding in war. New powers of order must evolve out of chaos.
At the deal’s heart would be an informal understanding that the private sector holders of Greek government bonds might be persuaded to roll over their debts, or extend new loans at the time their older obligations come due.
i read about this last week. informal understanding among banksters, right? that the private sector holders of Greek government bonds might be persuaded to roll over their debts.
the stipulation for more new debt is that the old debt won't get paid for a while longer.
win-win!
unh,...,...when does escrow close?
What part of "BROKE", do these folks not get?.
As in we ain't got no Mo!.
Time for the Greek public to use the new rope.
tears
" ... After all it is JPM, GS, BAC, Citi, UBS, RBS, RBC, CITI, DB et al that are preparing the CIMs that will be ultimately presented to, and used by, individuals at JPM, GS, BAC, Citi, UBS, RBS, RBC, CITI and DB."
Don't forget BS in Madrid.
Lets pay attention to the Fixings, coming up soon in Europe.
If your selling Greek Islands, go with the 10 day auction. It may cost another 15 cents but is well worth the money.
They won't have enuf of those emerald islands to sell to be able to pay back 200b euros, not when the stingy old farts of Europe are the only ones allowed to buy them :), not even 20 year old hampton residents (aka HFT gamers) would fork out billions to buy a piece of rock. And the chinese and indians aren't interested in catching skin cancers. Where is the ECB going to find 30b to give to gpap? Well, the same way as the IMF is going to ask the disney country to do it: PRINT! Funny money for real rocks, that rocks!
perhaps rich greeks will buy stuff, with borrowed money, of course.
Herr Adolf Blankfein is flying into Athens this weekend to look over his NEWEST Conquest........some things never change.........
Dont be stupid and buy greek assets. They will tax the shit out of you a year or two after the sale.
The swaps have them terrified. The banks have helped that terror along with a single easy phrase "We don't know the extent of our swap exposure because it is too complex and there is no reliable clearinghouse."
And that's that. Too much exposure near and far. They will print money forever to keep these juggled balls in the air. There will never be a monetary mechanism for disintegration.
It all falls apart in one way, and one way only.
Oil.
Glad to hear it...my broker was saying he needed to refinish his Yacht and replace his two-year-old BMW with a new shiny one.
I mean after all, what are all those Germans and Greeks bending over for but for Bigger Bailout Bonuses, right?
BTW, I read the greels and German have ordered record levels of KY Lube.
this is what the banksters really wanted-their own islands where they can
seek safe refuge from the rest of the angry mob when they lose it
They want those islands, big time. I wouldn't be to surprised if China doesn't come to Greece's help and say we will give you such and such for these Islands.
Privatisation!
Why should banks be rewarded by profitable privatisation (since they organise it) after they (together with their pension funds) have been bailed out by the taxpayer.
I would take the real estate, package & securitize it (!) and call the package eurobonds. Use the proceeds to finance future EU 'projects' (hopefully smarter ones)
Delay the default as much as possible. Let the crisis get worse, desperation will sway public opinion(already happening) about selling off assets. This way better deals will be had, islands, casinos, airports, ports, mineral/oil rights(oil soon to be "discovered" in aegean), Tax collection, road tolls, etc...the worse the crisis gets, the more crap the people will be willing to accept.
How much do they want for Paxos?
The Germans are foolish for accepting this. Greece will default regardless of the prospects of a bailout. This mindless drivel is only perpetuating the insanity and providing incremental time for the big money to pass on their empty bags to a new set of bagholders. The German government owed far more to its own people.
People of Greece: DEFAULT. Find a way. Tar and feather the politicians if you must. Burn down every government building. Whatever you must do, stop your supposed servants from raping you.
DEFAULT. Yes, you [hopefully] won't be able to borrow any more. Good. You need to stop borrowing, work more, expect less "benefits", but don't let those scumbags steal your country and permanently enslave you.
Look where debt has got you. You really say "we can't live without it"? If so, wake up. That's a lie. People in the 1500s lived without debt, and they had massively less efficient means to live.
Whatever you do, default and refuse to borrow. Get rid of those criminal banksters that now control your so-called "government", who are actually just bought-and-paid-for agents of the criminals trying to pick your body and country dry.
Wake up. Default.
YEAH
raisedfist.jpg
Yes. Greeks & everyone else in the world default!
That's not how it works. The debt is the excuse the government uses to collect taxes and to present them being forced to take this action or that action. There is no default. Only zuul tax refusal.
I take Lesbos, you can have νησ? σκατ? με τους βρ?χους, δεν ?χει νερ? και ηλικιωμ?νη γυνα?κα
I got three words for ya:
Pow Der Keg
Neo-feudalism comes to Greece.
When all the assets are sold for chump change and all the cash cows have been blead dry, then Greece will default.
Sell all islands to the billionairs.
Then tax them 100million a year for owning the islands.
That will solve all greece's finacial crisis. Problem solved.
And they can't sell the island if they still have a penny left.