- The Big Picture - http://www.ritholtz.com/blog -

King Report: Greek Crisis Turns into a Political Crisis

Posted By Bill King On February 17, 2010 @ 12:30 pm In Bailouts,Credit,Think Tank | Comments Disabled

king-logo

>

The Greek Crisis has become a major political crisis for Europe.

• Due to populace pressure against bailouts, politicians are proposing draconian cuts for Greece with vague promises of aid.
• It’s possible that Euro politicians keep increasing demands on Greece in order to dissuade Greece from accepting an EU bailout.
• Due to populace pressure, Greek politicians cannot make the EU-demanded socialism cuts.
• Euro opprobrium toward Greece and Goldman due to their scheme to conceal Greece’s true budget deficit might be manifested in sanctions against the deceitful duo.

The Greek Crisis highlights:

• The implosion of western socialism due to unserviceable sovereign debt, exacerbated by the massive transfer of wealth to Asia
• The impetuous creation of the Euro (a throttling condition for the reunification of Germany)
• The lack of an enforcement mechanism for Maastricht violations
• Greece as the guinea pig for future European crisis
• Sovereigns have been concealing the truth about their deficits, financial & economic conditions.
• Sovereigns will divert attention from their venality by conducting an inquisition of speculators.

Reuters: Eurozone gives Greece 30 days to show good on deficit  … Greece had 30 days to prove its plans were off to a convincing start and he said that Athens could count on unspecified support if that was not the case and markets refused to give it breathing space…. Greece’s Socialist government is fighting an uphill struggle to get its finances in order, restore credibility in other capitals and financial markets alike, and prove that the data it publishes on its economy is no longer what Swedish finance minister Anders Borg described as “basically fraudulent.”…

http://www.reuters.com/article/idUSTRE61E3E920100215

The Strait Times: European Central Bank (ECB) president Jean-Claude Trichet castigated the Greek government for its accounting and said other European nations would strictly monitor the recovery plan put in place by the socialist government in Athens.

The ECB also wants finance ministers to demand greater budget cuts than those already offered by Greece, whose public deficit has hit 12.7 per cent of gross domestic product and debt of about 300 billion euros (S$577 billion) is now 113 per cent of GDP.

http://www.straitstimes.com/BreakingNews/Money/Story/STIStory_490602.html

BN: Greece should lose voting privileges in the European Union if it gets a bailout from the 27-nation bloc, said the head of the business caucus of German Chancellor Angela Merkel’s Christian Democratic Union…

http://www.bloomberg.com/apps/news?pid=20601110&sid=ax9I0FD1YxgU

BN: Greece’s Goldman Sachs Swaps Spawn EU Dispute on Disclosure
A dispute is unfolding about how long European Union officials have known that Greece used derivatives to conceal its growing budget deficit…

http://www.bloomberg.com/apps/news?pid=20601110&sid=aZom2jvtHvWk


Article printed from The Big Picture: http://www.ritholtz.com/blog

URL to article: http://www.ritholtz.com/blog/2010/02/king-report-greek-crisis-turns-into-a-political-crisis/

Copyright © 2008 The Big Picture. All rights reserved.