Comments on: Greece and the Troika’s Treachery http://www.creditwritedowns.com/2012/02/greece-and-the-troikas-treachery.html Finance, Economics and Markets Wed, 23 May 2012 01:55:46 +0000 hourly 1 By: roger erickson http://www.creditwritedowns.com/2012/02/greece-and-the-troikas-treachery.html#comment-80911 roger erickson Sun, 12 Feb 2012 15:26:54 +0000 http://www.creditwritedowns.com/?p=41992#comment-80911 Seems the prior goal is to pressure Greece to let key assets like energy utilities go to private hands BEFORE the inevitable default. God forbid the Greeks let this happen. Have they forgotten their own tyrant/demos struggles from 2500 years ago? Seems the prior goal is to pressure Greece to let key assets like energy utilities go to private hands BEFORE the inevitable default. God forbid the Greeks let this happen. Have they forgotten their own tyrant/demos struggles from 2500 years ago?

]]> By: Norme http://www.creditwritedowns.com/2012/02/greece-and-the-troikas-treachery.html#comment-80906 Norme Sun, 12 Feb 2012 08:41:08 +0000 http://www.creditwritedowns.com/?p=41992#comment-80906 I agree, the escrow account will ensure Greek debt get's paid, but will also further strangle the "after tax" money Greece can circulate through it's deflating economy. And it's still on the hook for the entire tranche. Escrow accounts are often used in death and divorce cases. This may be what we have, It might be a firewall instrument. This looks like the death nail for Greece on the euro. Greece is retiring some debt held by the ECB as a result of this deal as those bonds will be in default and ineligible as collateral. Apparently the EFSF is involved and may take the hit, not the central bank. Not sure of the details. None of the other EFSF bail out special cases are faring so well, while those backed by ECB money (after Monti's fiscal compact was accepted) are probably the chosen ones to remain in the EMU. I agree, the escrow account will ensure Greek debt get’s paid, but will also further strangle the “after tax” money Greece can circulate through it’s deflating economy. And it’s still on the hook for the entire tranche. Escrow accounts are often used in death and divorce cases. This may be what we have, It might be a firewall instrument. This looks like the death nail for Greece on the euro.

Greece is retiring some debt held by the ECB as a result of this deal as those bonds will be in default and ineligible as collateral. Apparently the EFSF is involved and may take the hit, not the central bank. Not sure of the details. None of the other EFSF bail out special cases are faring so well, while those backed by ECB money (after Monti’s fiscal compact was accepted) are probably the chosen ones to remain in the EMU.

]]> By: ian http://www.creditwritedowns.com/2012/02/greece-and-the-troikas-treachery.html#comment-80868 ian Fri, 10 Feb 2012 19:59:21 +0000 http://www.creditwritedowns.com/?p=41992#comment-80868 "Perhaps that’s the idea. Make the deal so miserable for the Greek people that the Spanish, Portuguese, Irish and Italians don’t even begin to think of trying to get a similar haircut on their debt." I think there is even more to it than that - to save the euro, you allow one country to default, but put them through hell first as an example to others. “Perhaps that’s the idea. Make the deal so miserable for the Greek people that the Spanish, Portuguese, Irish and Italians don’t even begin to think of trying to get a similar haircut on their debt.”
I think there is even more to it than that – to save the euro, you allow one country to default, but put them through hell first as an example to others.

]]> By: David Lazarus http://www.creditwritedowns.com/2012/02/greece-and-the-troikas-treachery.html#comment-80862 David Lazarus Fri, 10 Feb 2012 15:37:10 +0000 http://www.creditwritedowns.com/?p=41992#comment-80862 I do agree that the plan is to make the medicine so distasteful that the other troubled states do not risk default the problem is that unless the debts are reduced even more then the sustainability of any program will consign Greece to third world status for decades. The social fabric of Greece is collapsing which children being abandoned on the steps of churches and long term that will create new unforeseen problems. I do agree that the plan is to make the medicine so distasteful that the other troubled states do not risk default the problem is that unless the debts are reduced even more then the sustainability of any program will consign Greece to third world status for decades. The social fabric of Greece is collapsing which children being abandoned on the steps of churches and long term that will create new unforeseen problems.

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