More EU Bollocks.

The EU Creed – “Try and Try again there is no do”

The negotiations have gone on for months. If you truly believe that it’s about making Greece’s’ debts more affordable you’re mad, this is about setting targets that are impossible to meet, thus creating a situation wherein Greece becomes a third world country outside the EU, and all the unelected eurocrats cry “We did our best, we spent months working on a plan”. We already know its win, win for the bondholders anyway link , link, and the US is heavily leaning on Germany to do what ever is possible to stop the inevitable default bleeding the fed dry.

Saturday 4th February 2012

Euro zone finance ministers told Greece it could not go ahead with an agreed deal to restructure privately held debt until it guaranteed to implement reforms to secure a second financing package from the euro zone and the IMF.

via Euro zone insists no Greek rescue without reforms | Reuters.

Sunday 5th February 2012

Greece’s prime minister scrambled Sunday to convince lenders and politicians to sign off on a 130 billion euro rescue, after his finance minister said just hours remained to clinch a deal to avoid a messy default.

Via Greece on “knife edge” in push to agree bailout

Analysis 24 January 2012

So, they’re going through a drawn-out step-by-step procedure of demands for reforms, promises, failed implementations, rebukes, withheld bailout transfers that then might still be made, and so on. The idea is to keep markets from panicking, give governments time to prepare for the inevitable, and render politicians blameless for Greece’s exit from the monetary union.

Via Paying Lip Service To Saving The Eurozone


I’m not quite sure if anyone else is keeping a running score on all this, but by my calculation, what was going to be a leveraged 440bn euro EFSF turning into 1.3 trillion via Spiv investments, plus an additional 2o0 billion from the IMF (a grand total of 1.5trillion euros) now looks more like 600 billion….falling short by a mere 60%. Or, as a French credit manager put it this afternoon, “Nowhere near enough”.

So in brief, the heads-up is this: thanks to half-bankrupting itself  to buy junk bonds, the ECB doesn’t have enough for proper bank bailouts; all the banks that most need buffers have the smallest ones; and the EU itself has just two euros out of each five required to stop multiple defaults.

via EU CRISIS: The simple problem is, there’s nowhere near enough money. | The Slog.