Ok, So the Greece just voted in a landslide to reject further austerity (Good for them). So nobody knows what’s going to happen next. There nothing like a financial crisis to get adrenaline pumping, Might be the chances of Grexit be higher now, but I would not dig in to detail. Would rather move away to the maverick author Nassim Nicolas Taleb who made the points for Bailouts and Prevailing culture in the financial domain
- The main difference between government bailouts and smoking is that in some rare cases the statement “This is my last cigarette “holds true
- The difference between banks and Mafia: banks have better legal regulatory expertise, but Mafia understands the public opinion. Or you can say”Give a man a gun and he can rob a bank. Give a man a bank and he can rob the world”
Continue reading “Greece Bailout Yes or No”
The endeavour below is to – explain a very complicated circular trading (round tripping algorithm) nonsense that became a crisis – in a simple way.
MARY is the proprietor of a bar in Dublin. She realises that virtually all of her customers are unemployed alcoholics and, as such, can no longer afford to patronise her bar – she will go broke.
To solve this problem, she comes up with a new marketing plan that allows her customers to drink now, but pay later.
She keeps track of the drinks consumed on a ledger (thereby granting the customers loans).
Word gets around about Mary’s ‘drink now, pay later’ marketing strategy and, as a result, increasing numbers of customers flood into Mary’s bar. Continue reading “Greece Crisis in simplified terms”
The problems of Greece is not new, long before the financial crisis hits the global economy in 2008-09, Greece was in trouble. The combination of structural economic weakness and high structural deficits were compounded by a culture where tax evasion and corruption are both widespread and, to a large extent, acceptable and Euro became the scapegoat. The Euro is a scapegoat. Hard currency is not inherently bad. The real problems are: Continue reading “Is Greece a failed state now”
For the better part of a decade now, the world has been hearing stories about financial woes in Greece in addition to growing tension between the Greeks and other European countries taking part in the Euro system. For those who aren’t particularly attached to the Euro or major European industries for purposes of investment, it’s been easy to gloss over these stories; from afar, it’s simple to shrug off the news and assume everything will work out.
But who would have really thought that this far into the apparent success of the single currency system in Europe, Greece might actually be on its way out? According to some off the latest reports regarding current debt management negotiations and Greek impact on the Euro and European stocks, a departure from the Euro has become a real possibility for Athens.
Following the latest breakdown in debt negotiations between the International Monetary Fund and Greek officials this past week, Reuters made note of “another setback in Greek debt talks took their toll on European markets.” The article goes on to mention that “Greek assets bore the brunt of the pain,” and yet as negotiations with the potentially defaulting nation continue to go poorly, there’s a growing sense among some that the Euro as a whole will continue to be held down. Continue reading “Greece & The Euro”
Well it is official the political party leaders in Greece failed to reach on the agreement and the re-election is on the cards. The jeopardy conditions calls for the lenders withdrawing $898 million from greek banks. What will happen if Greek exits Euro ? Who will pay their debt in-case if they exit Euro and the future of Euro lot of dilemma needs to be addressed.
The ripple effect of the above is that the parties who oppose the austerity measures upon which Greece’s bailout is conditional, such as Syriza, will gain support in new elections. Continue reading “Greece crisis contagion on the cards”