Greek Deal: Unmet Expectations?

Burkhardt's picture

Greek Deal: Unmet Expectations?
Justin Burkhardt |

The long awaited Greek deal has finally come to fruition, or has it? The old adage that history has a way of repeating itself is something to consider here. Over the last 3 years talks of a Greek bailout have been continuous, yet without finality. Today it sounds like a decision has been made as Euro-leaders have unanimously decided to reduce Greece’s debt and recapitalize its banks via easing packages that will be broken down into four tranches.
December 16th is set to be the “target” release date for the initial bailout tranche of $44 billion, but historically how many times have targets like this one been set and then pushed back and promptly ignored?
I am not implying that this deal will not get done, just that we should expect the unexpected when it comes to government promises.
Greece is obviously a major concern for the EU, but the markets are clearly more concerned with the bigger picture (the fiscal viability of the Euro-Zone). The Euro rallied this morning after EU-leaders came to terms with a new Greek deal but the optimism quickly shifted as concerns of the broader picture began to weigh in.
Just maybe the Greek bailout saga is drawing to a close. While markets set expectations, we now move towards the true impact of what this final deal will do for both Greece and the EU as a whole. Moral hazard is set to be released again, and we get a chance to glimpse the true impact…


<<Click Here to Continue Reading>>

Your currency analyst,

Justin Burkhardt   



Comment viewing options

Select your preferred way to display the comments and click "Save settings" to activate your changes.
Setarcos's picture

Give 'em more debt to get out of debt.

That's just gotta work, don't it!

What could possibly go wrong when Venture Vultures, e.g. Romney, strip assets via borrowed money, then walk away leaving banks with nothing ... and what could go wrong when banks turn empty 'assets' into derivatives?

THE DORK OF CORK's picture

What do you make of this document (Leaked ?) makes for interesting reading.......

Greece appears as a sort of vaacum flask for the banks most extreme experiments but I am sure Ireland and the rest are not too far behind this.

This document raises much deeper questions.

The objective seems to be a massive socio – economic change not unlike the cromwellian ranch experiment in Ireland & the later final hanoverian displacement in western scotland.

Namely to drive the peripheral area into a form of extreme energy surplus that can continue to feed the cold dead heart of the core even if it means massive losses of productivity.

The implications of this is profound.
With the final destruction of the nation state after the single European act of 1986 these areas have become rich areas of extraction for the financial capitals and the former nations that give them sucker.

The similarity with the formation of the early UK in the 1700s is striking , with favoured nation status granted to England and other minor areas such as Dublin & Edinburgh while the remaining areas feed these cities which must always remain in real goods deficit.

The plan is now finally becoming very easy to read.

These former countries no longer borrow from their own hinterland - they transfer a ration to the central financial districts / centre of banking operations and then plead  for some gruel. This is nazi rule , banking rule - whatever you would like to call it. These bastards are very much back in business. Notice the language The government will, The government undertakes,  The government ?

Europe is in a dark place once again.


bunnyswanson's picture

Look at the homes these rich bastards live in:


We underestimate the lengths these people will go to in order to remain living as kings in castles.  Need a new town crier before it's too late and we live to regret just talking about it.

Setarcos's picture

"give them sucker".  Freudian and APT slip?

Historical similarities are indeed striking, so don't get me wrong to be being pedantic on you ... pretty much the reverse, especially with your references to Scotland and Ireland ... an unholy London Empire mess to this very day,  "My mother she was Orange and my Father he was Green ... ".  Or was it the other way around?  And don't mention absentee landlords in what notionally became Eire, though in fact still a vassal of the City of London.

Orly's picture

Where's the beef?

Dareconomics's picture

The Greek bailout deal is a ploy to make the problem go away until after German elections, though I am not so sure the troika has succeeded.