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2010-05-02 Europe

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Posted by Bobby 2010-05-02 07:14|| || Front Page|| [11127 views ] Top

#1 Greek Loan Would Violate IMF Charter

The IMF is supposed to be lender of last resort. Europeans want it to be among the lenders of first resort in this crisis. Greece can, after all, borrow from the markets, but it will have to pay 7% interest. Instead of relying on market discipline, the Europeans seek to use IMF to organize a rescue package with an interest rate averaging maybe 5%. This implicit interest subsidy is justified by saying Greece will default if it has to pay 7 % interest. Maybe, but many analyses suggest that Greece is fundamentally insolvent and will likely default anyway.

Posted by john frum 2010-05-02 07:55|| 2010-05-02 07:55|| Front Page Top

#2 Anyone else think this will work?

Nah, me either....

Posted by DarthVader 2010-05-02 08:14|| 2010-05-02 08:14|| Front Page Top

#3 Anyone else think this will work?

That depends on what the intentions were. If the intentions were:

to send the message to the Greek populace that its Government can't go too far in attempts at major reforms because it has a safety net and money in the bank, or

to send the message to other eurozone states in the same danger that they can relax a bit and make less effort to avoid risking the same fate as Greece, or

to send the sobering message to hardworking Europeans that they are the soaked tax rubes/cash cows in this socialistic utopia,

then yes.

Posted by Bulldog 2010-05-02 08:31|| 2010-05-02 08:31|| Front Page Top

#4 Take the money doods, make a show, get some more money... maybe 2 more cycles, then invent the Drachma. LOL and leave 'em holding the bag. Pay attention Roma, disn is how to do it, but don't try Drachma, invent the FerrariSchilling.

Posted by Shipman 2010-05-02 09:58|| 2010-05-02 09:58|| Front Page Top

#5 This is the Euro version of Obama's shuck-and-jive economy.

Posted by Anguper Hupomosing9418 2010-05-02 15:08|| 2010-05-02 15:08|| Front Page Top

#6 Anyone know how much US tax money went to the IMF and therefore was used to bail out Greece? Significant.

Posted by Hellfish 2010-05-02 20:06|| 2010-05-02 20:06|| Front Page Top

#7 May 3 (Bloomberg) -- Euro-region ministers agreed to a 110 billion-euro ($146 billion) rescue package for Greece

Anyone know how much US tax money went to the IMF
Wikpedia sez 17.09% share and $56 billion.

Posted by ed 2010-05-02 20:27|| 2010-05-02 20:27|| Front Page Top

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