Europe should call Greece’s bluff

greece-election

So anti-austerity Syriza wins elections in Greece, so what? Stupid kippers on twitter are already dancing on the roofs of their Vauxhall Vivas, without realising the damage they are doing to their paintwork.

grexit

But what should the EU’s response be, when victorious party leader Alexis Tsipras comes to Brussels to renegotiate Greece’s debt?

I think his creditor’s should tell him to “F*ck off” in the most polite way possible. And those holding Greek state bonds paying 6-8% interest should be told just as polite to write them off as junk bonds!

Just like a state’s bad behaviour, risk taking by dumb investors should not be rewarded.

I have always learned that if as a saver you give a risky business a loan, you get compensated for that risk by receiving a higher interest on your loan. You accept the risk that there is a small chance you might not get your money back. If risk averse, buy German state bonds.

If the EU lets the unscrupulous lenders rake in their 8% Greek loan coupons, plus guarantees to compensate them for their eventual loss if Greece defaults on their loans, than that rewards unresponsible spending, lending and borrowing by states.

Who holds those high risk bonds anyway? In all likelihood they are held by the richest 1% of this world, who can well afford to loose some of ther wealth. Not us poor average EU tax payers.

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About lasancmt

Passionate about Identity Management Disgusted at #ukip and #brexit
This entry was posted in #brexit, EU and tagged , , . Bookmark the permalink.

One Response to Europe should call Greece’s bluff

  1. lasancmt says:

    A few months later it looks like my worst fears have come true….

    http://uk.businessinsider.com/greece-referendum-result-and-the-meaning-of-debt-2015-7

    I block quote the relevant part below:

    “There is another key fact that the Greeks are keenly aware of (but which everyone else has forgotten). This debt was initially owed to private investment banks, like Goldman Sachs. But the IMF and the ECB made the suicidal decision to let those private banks transfer that debt to EU insitutions and the IMF to “rescue” Greece.”

    So there we have it, the F***ing private banks take their ‘reward’ and then off load all this unsustainable debt to, yes you guessed it, us the sodding tax-payers ( mainly German ones )

    Read more: http://uk.businessinsider.com/greece-referendum-result-and-the-meaning-of-debt-2015-7#ixzz3f6iDsRjp

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