Had Greece simply defaulted a year ago, the cost may have been haircuts of $50 billion..

[girl gone mad]

http://globaleconomicanalysis.blogspot.com/2011/07/plan-to-spoon-feed-greece-to-death.html

The plan is to suck Greece dry, not to bailout Greece, but rather to bailout the banks that to lent Greece. That plan is still not finalized.

However, the plan will backfire. Greece will default anyway, and the ultimate cost will be higher to Greece and the banks that lent to Greece. European taxpayers will be asked to foot the bill.

Notice how silly this has gotten. Had Greece simply defaulted a year ago, the cost may have been haircuts of $50 billion or so. Now $282 billion (and counting) has been invested to “save Greece”.

Does Greece look or feel saved?

[PoliticAverse]

1. There's a reason the phrase "debt slavery" exists. n/t

[jul61252]

7. +100

[Starry Messenger]

2. recommend.

[slipslidingaway]

3. Hurrah, We’re Saved – Again!

http://www.acting-man.com/?p=8402

"...At the risk of sounding like party poopers, we want to point out that Greece is just as bankrupt today as it was yesterday. Nothing has changed on a fundamental level. The eurocrats have 'bought more time', which in this case is the equivalent of handing out more rope to hang oneself with.

Below are a few things that have caught our eye in recent days that look like they are worth keeping tabs on. Firstly, a slightly disturbing news item flew in under the radar screen while everyone was focused on Greece.

The euro area's latest bank 'stress test' farce has been concluded, and apparently 15 of the 91 banks tested were found to be undercapitalized. This may not sound like a big number, but consider that these 'stress tests' use the most benign of assumptions..."

[eppur_se_muova]

4. One out of six is not a big number ? EXCUSE ME ?

How extreme does the situation have to get for this to be referred to as "a lot of banks" ?

[slipslidingaway]

6. Not exactly sure ...

the author did say "This may not sound like a big number..."

:shrug:

[golfguru]

5. US needs to embark on a path of debt reduction also

Both government and private debts are at record levels.
The longer this is postponed, the more dire results await us.

[bemildred]

8. It's called "chasing the pot". nt

[laser_red]

9. if a country defaults, their bonds are not accepted as collateral ...

if a country defaults, their bonds are not accepted as collateral
by the European Central Bank

[qcdound]

10. it is wast money to save Greece

it is wast money to save Greece

[girl gone mad]

11. It was never about saving Greece.

It's about saving the French and German banks and the American firms who have written default swaps on Greek debt.

[bemildred]

12. +1. nt