Yves here. The RT show Boom/Bust has an informative conversation with Yanis Varoufakis on the conundrum of the recent successful Greece bond offering. Why would investors buy bonds of a clear basket case like Greece, when it’s obvious from the overhang of debt that more restructurings are inevitable?
The segment with Varoufakis starts at 3:30. The opening segment is an update on possible HFT reforms.
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Greece is waiting for the private sector cavalry. The kleptos are playing bugle sounds as they send more raiders in to finish the looting. So what’s new? The risk takers of private money will only invest where there is no risk (no hair cut bonds). All coming soon to a country near you. The only escape is to discover oil and gas, the very things we should leave in the ground. Of course, you won’t own the output. The meek only inherit the earth, not the mineral rights (and the earth only after than is polluted).
+100
Also we can see original intent, even 10 years later, as this whole skirmish of oil empires unfolds. We, the USA, want Russia out of Europe. We have wanted socialism out of Europe for almost a century and it is a losing battle no matter how much we deny it. But we have not given up. We have now sent our troops to Poland. The most obvious objective of all this territoriality is to prevent Russia from selling Europe natural gas because we want to keep the EU in our sphere; and prevent the EU from getting too chummy with all those satanic commies. If we force the EU to be dependent on us for energy then we win politically for some time to come. It’s an extortion racket.
I know an American company which sells stuff to Greece wanted “bonds” as payment.
lol
Before the German election last year the word was that there would be a more realistic assessment of the Greek economy once Merkle was back in power. The debt would be written down and the haircuts would commence. Now we are waiting on the EU elections before honesty can prevail?