By John Galt
October 23, 2011 – 13:00 ET
The news from the Eurocircus continues, with this beaut from Reuters just minutes ago:
Banks raise Greek haircut offer to 40 percent in talks: source
Uh, the Greeks themselves said they needed 60% at a minimum as did an IMF study so one more time, how does leaving the bill on the German taxpayer’s tab help this situation again?
From the article:
Politicians, including German finance minister Wolfgang Schaeuble have asked private creditors to Greece to accept steeper writedowns on their holdings than the 21 percent losses agreed last July.
Politicians and bankers are still wrangling over how to restructure Greek debt as part of negotiations to reform the common currency.
EU officials have also demanded that banks prop up their capital cushions to meet a core tier one capital ratio of 9 percent, in a bid to make the financial system more able to withstand a restructuring of Greek debt.
Banks are seen needing just under 100 billion euros with the bulk required by banks in Greece, Spain and Portugal.
Unfortunately for this offer, this does nothing to increase Greek solvency, generate positive economic growth, nor assist the banksters with regards to their capital positions which are suspect based on overly rosy economic projections and hopium. Stay tuned as when the currency markets start ripping at 4 pm. ET, the real votes which matter will start to filter in and I wonder if the Germans are stupid enough to impose a bailout of this magnitude upon their citizenry.
Recent Comments