Another week has come and gone, and there is still no resolution on Greece. Germany’s Angela Merkel has firmly stated to the EU party members on Thursday that a deal on Greece must be on the table before the markets open on Monday. She also stated that “we won’t be blackmailed.”
Not only has the entire Greek “drama” to the point of boredom in the media, it is Greece who should realize that they are under no obligation to do anything. It is the EU banks who have absorbed the Greek debt in massive tranches to garner higher yields with the belief that the EU will always bail them out. However, as the old saying goes:
“If you owe your banker $100,000 it is your problem. If you owe the bank $1 million, it is the bank’s problem.”
With primarily banks and hedge funds owning the bulk of the Greek debt currently, each bailout of Greece so far has only benefitted the owners of those bonds as the bailouts passed directly through Greece to those portfolios. It seems that this is a “bank problem” rather than a “Greek problem.” And if that is indeed the case, it will be the ECB and the EU giving into a deal for Greece sooner rather than later.
In the meantime, as we await the final capitulation by the ECB, EU and IMF to provide Greece another bailout, I have assembled a list of reading for you that has ABSOLUTELY NOTHING to do with Greece.
1) What To Expect In Second Quarter GDP by Elizabeth MacDonald via Fox Business
“While blame is placed on the cold weather and the west coast port strikes, Stephanie Pomboy at MacroMavens notes a weird anomaly that may explain why growth continues to flatten.
Consumer spending growth is key to the U.S. economy.
Originally appeared at: http://davidstockmanscontracorner.com/5-things-to-ponder-while-we-wait-on-greece/
5 Things To Ponder: While We Wait On Greece is a story from: BitcoinWarrior.net