It looks like you're using an Ad Blocker.
Please white-list or disable AboveTopSecret.com in your ad-blocking tool.
Thank you.
Some features of ATS will be disabled while you continue to use an ad-blocker.
(visit the link for the full news article)
BERLIN — Chancellor Angela Merkel of Germany retreated Friday from demands that private financial institutions be pressured to participate in efforts to rescue the Greek economy, a compromise that seemed to offer some breathing space in Europe’s efforts to confront its potentially ruinous debt crisis.
Her critics in the European Central Bank and in many European capitals had argued that any requirement that private investors absorb some losses risked plunging Greece into a disorderly default on its enormous debt.
But after a two-hour meeting with President Nicolas Sarkozy of France, whose banks are among the most heavily exposed in the Greek debt crisis, Mrs. Merkel relented, saying, “We would like to have a participation of private creditors on a voluntary basis.” She acknowledged, too, that there was no legal way of forcing banks to participate.
Eurozone leaders formally approve Greek aid package
Eurozone leaders have formally given their backing to a massive aid package for Greece, hoping that their show of political resolve will prevent Athens' debt crisis from spreading to other European countries.
“It’s done,” a European Union source said, confirming the leaders of the 16-country single currency group had given their political stamp of approval to an EU-IMF deal to release 110 billion euros ($147 billion) to Greece over three years.
Originally posted by Mdv2
Oh isn't it ironic that Spain and Portugal are paying billions to keep Greece afloat?edit on 18-6-2011 by Mdv2 because: (no reason given)
Yes and Ireland and Cyprus, Cyprus also being a country that recently applied for financial assistance. The whole thing would be a comedy if it wasn't so seriously damaging. extra DIV
Originally posted by Vitchilo
reply to post by Mdv2
The IMF gives 30 billion euro... most of that, if not ALL of that will come from US taxpayers money.
In 2009, at the urging of the Obama Administration, the IMF was provided access to additional funding of up to $108 billion which can be used to bailout foreign countries.
Originally posted by Mdv2
I am not sure what I'm more flabbergasted about - the fact that they steadily go ahead stealing from the people or the fact that most people are angry with their respective governments, instead of with the real perpetrators: the banks.
In summary, instead of doing everything in its power to stimulate reserve, and thus cash, accumulation at domestic (US) banks which would in turn encourage lending to US borrowers, the Fed has been conducting yet another stealthy foreign bank rescue operation, which rerouted $600 billion in capital from potential borrowers to insolvent foreign financial institutions in the past 7 months. QE2 was nothing more (or less) than another European bank rescue operation!
Dutch banks have a total exposure of $5.1 billion to Greece. Simultaneously, Greek banks have some $4 billion in Dutch bonds. The nett loss for our banks would therefore be maximally $1.1 billion should Greece default.
However, what about the other countries? Would Greece pull the other Mediterranean states along if it defaults? Well, not exactly. Spanish, Portuguese and Italian banks are more exposed to Greece than vice versa. But how much would they exactly lose if Greece goes bankrupt? Italy: $3.78 billion, Spain: $722 million, and Portugal $4.4 billion. Not funny, especially not for Italy and Greece, but definitely incalculable.
There's only one reason why they are really worried about Greece, and that reason is France. French banks are most exposed to Greece and have a nett of $60,7 billion in outstanding loans. If Greece goes down, so will France. Previously, it was leaked that Sarkozy threatened to leave the Euro if the EU would decide not to bail Greece out. So basically: to save France.
We can only let Greece collapse by simultaneously let France default too. If Greece is consequently forced to withdraw from the Euro, so will France. Otherwise you will end up with a second Greek scenario in France within a month. If we don't save the Greeks, we should also expel the French from the Euro. Which effectively is no problem. In fact, it's a perfect opportunity. If we throw these two nations out, we'll rid the union of its weakest links and the rest of the Eurozone could finally breathe again.
We wouldn't have to be afraid that Portugal, Spain and Italy would go down the drain if France goes: the French banks have more outstanding loans in these countries than vice versa. That also applies for the Netherlands and as a matter of fact, for all other Euro nations. We could let France default without risking a billion noose.
We can only let Greece collapse by simultaneously let France default too. If Greece is consequently forced to withdraw from the Euro, so will France. Otherwise you will end up with a second Greek scenario in France within a month. If we don't save the Greeks, we should also expel the French from the Euro. Which effectively is no problem. In fact, it's a perfect opportunity. If we throw these two nations out, we'll rid the union of its weakest links and the rest of the Eurozone could finally breathe again.
Originally posted by Vitchilo
reply to post by Mdv2
The IMF gives 30 billion euro... most of that, if not ALL of that will come from US taxpayers money.
In 2009, at the urging of the Obama Administration, the IMF was provided access to additional funding of up to $108 billion which can be used to bailout foreign countries.