In their starched white shirts . . .

PIIGs: 5 Year CDS

chart via Bianco Research

Category: Bailout Nation, Credit

Please use the comments to demonstrate your own ignorance, unfamiliarity with empirical data and lack of respect for scientific knowledge. Be sure to create straw men and argue against things I have neither said nor implied. If you could repeat previously discredited memes or steer the conversation into irrelevant, off topic discussions, it would be appreciated. Lastly, kindly forgo all civility in your discourse . . . you are, after all, anonymous.

6 Responses to “Have you seen the little PIIGs?”

  1. Data Room says:

    The graph is a bit difficult for me to understand. Is it possible for you to explain it a bit in depth.

  2. DeDude says:

    I think the Europeans may be insane. I mean they are doing the same thing and it doesn’t work and then they do the same thing and it doesn’t work. At some point this continuing backdoor bailout of European banks will collapse. Amazing that the politically much more savvy electorate in Europe have not revolted against this transfer of debt from the European banksters to the European taxpayers. There is no way that these countries can afford to pay their debt – sooner or later the debtors will have to take a cut. I guess the plan is to wait forcing debtors to take a cut until the debt has been transferred from their banksters to their taxpayers. In the meantime the people of these countries are forced to suffer completely ineffective austerity measures, that basically just shuts down their economy even more and makes it that much less possible for them to ever pay back the debt. They suffer for the sole purpose of giving the banksters more time to unload the toxic debt.

    I still believe that the plan I suggested a year ago is the only viable way forward. Freeze all bonds and turn them into longer term debt with minimal or no interest. Then let the European governments take the much lesser chances financing the budget deficits of these countries for a limited number of years until a realistic plan of increased taxes and reduced spending have brought their budgets into balance. By not defaulting on the bonds but instead turning them into interest free bonds the banks do not have to take the full loss up front and they will have time to find ways to handle the loss.

  3. willid3 says:

    didn’t Ireland adopt a really stringent austerity budget? doesn’t seem to be working out very well for them. and didn’t they save their banks. and thats what got them where they are?

  4. Greg0658 says:

    DeDude folks want it to work out without a war like revolution .. “There is no way that these countries can afford to pay their debt – sooner or later the debtors will have to take a cut.” .. yes but in the mean time we have semi-quasi repossessions .. more chips in their pile from yours makes the future better for them – no matter how the workout comes down the pipe … I know you didn’t need me to say that – I’m just bantering for the hell of it :-)

  5. DeDude says:

    Basically what is happening is that the German government is demanding that the Irish, Greek, etc. people suffer through a totally counterproductive austerity budget (shutting down their economy) that accomplish nothing more than making it even more difficult for these countries to pay back the debt. The reason the Germans do that is to be able to do a secret backdoor bail out their banks by postponing the default on the bonds until the banks have gotten 100 cent on the dollar for their shorter term bonds and have sold the rest with a minimal loss. The ultimate cost to the people of the debtor nations and the people of Germany will be much bigger, but the German banksters will get out with minimal losses. The cost of pushing a nation into a severe recession with excessive austerity at the wrong time is huge and in this case it is done simply to allow German politicians to avoid having to give taxpayers money directly to their banks. Every full time worker produce over $100,000/year. So 10 million unemployed people represent an annual loss of over a trillion.

  6. rktbrkr says:

    the prior irish gov took on an unsustainable debt load to try to save their banks (the banks european creditors actually) and the banks RE losses continue to grow making default more likely all the while