Business

Round 2: My Big Fat Greek Bailout

As most everyone knows, Greece has been struggling with a crippling debt crisis that has threatened the financial stability of the euro zone. In an attempt to address this issue, euro zone countries held an emergency “crisis summit” earlier this week to try to ease the financial burden.

According to Business Day, “The euro zone countries and the International Monetary Fund (IMF) decided that they will give Greece a second bailout worth 109 billion euros ($145 billion), on top of the 110 billion euros ($146 billion) already granted a year ago.”

Additionally, banks and other private investors will contribute upwards of 37 billion euros ($50 billion) to the second stimulus package by either rolling over Greek debt, changing it for newer bonds with lower interest rates and/or selling the bonds back to Greece at a low price.

Good news, right?

Probably not. If anything else, this desperate second attempt at bailing at Greece is nothing more than just prolonging the inevitable.

Below is a portion of Seeking Alpha’s humorous but honest critique of the official statement released after the conclusion of the crisis summit.

“Translation of the Communique

We reaffirm our commitment to the euro and to do whatever is needed to ensure the financial stability of the euro area as a whole and its Member States. We also reaffirm our determination to reinforce convergence, competitiveness and governance in the euro area.

Translation:

We will keep throwing good money after bad as long as our electorates let us. The socialist Super-state project is not quite dead yet.

Since the beginning of the sovereign debt crisis, important measures have been taken to stabilize the euro area, reform the rules and develop new stabilization tools. The recovery in the euro area is well on track and the euro is based on sound economic fundamentals. But the challenges at hand have shown the need for more far reaching measures.

Translation:

The patchwork of ad-hoc measures implemented thus far, while costing an arm and a leg, has gotten us exactly nowhere. Instead of admitting defeat, there will now be even more of what hasn’t worked thus far. Although everybody knows that the recovery is actually going down the drain as we speak, we shall keep pretending that everything is fine. We will refer to that unholy mess as ‘sound fundamentals’ until we draw our last breath.

Today, we agreed on the following measures:

Greece:
1.We welcome the measures undertaken by the Greek government to stabilize public finances and reform the economyas well as the new package of measures including privatisation recently adopted by the Greek Parliament. These are unprecedented, but necessary, efforts to bring the Greek economy back on a sustainable growth path. We are conscious of the efforts that the adjustment measures entail for the Greek citizens, and are convinced that these sacrifices are indispensable for economic recovery and will contribute to the future stability and welfare of the country.

Translation:

Here are the next portions of our patchwork quilt.

1. We will continue to pretend that whatever the Greek government tells us is actually credible (please don’t laugh). The ongoing molestation of Greek citizens and tax payers for the benefit of creditors who have taken unconscionable risks continues to meet with our approval. Sorry chaps, for you, it’s sacrifice time. Rest assured that the eurocracy will remain completely untouched by your being ground into the dirt. Someday, you’ll thank us for it.

2. We agree to support a new programme for Greece and, together with the IMF and the voluntary contribution of the private sector, to fully cover the financing gap. The total official financing will amount to an estimated 109 billion euro. This programme will be designed, notably through lower interest rates and extended maturities, to decisively improve the debt sustainability and refinancing profile of Greece. We call on the IMF to continue to contribute to the financing of the new Greek programme. We intend to use the EFSF as the financing vehicle for the next disbursement. We will monitor very closely the strict implementation of the programme based on the regular assessment by the Commission in liaison with the ECB and the IMF.

Translation:

2. This is where we throw more good money after bad, an estimated € 109 billion of it this time. Creditors will actually have to drop a tiny bit of their claims, but not to worry, most of those have already been offloaded to the public sector anyway. This would be a good opportunity to apologize to the tax cows for this affront, which we shall let pass unheeded. Additional measures that will help us to keep pretending that the Greek government’s debt mountain can actually be repaid one day have been implemented. We call on those other bureaucrats across the pond to keep throwing money at the problem as well. We shall keep a close eye on what’s happening, just as last time (fat lot of good as that did).”

Read the rest of the critique article here.

Comments (18)

  • DAYWATCHER
    Posted on July 25, 2011 at 8:45pm

    The sad thing is you can almost say the same thing about our current situation here in the USA. This sounds just like the White House double talk we here every day.

    Report Post » DAYWATCHER  
  • smokeysmoke
    Posted on July 25, 2011 at 1:29pm

    im just glad to know that the GREEKS have learned their lesson this time, and are making reasonable cuts to their budget, while at the same time doing things to encourage investment… thus guarenteeing that the BAILOUT made by the IMF(20%us money) was appropriatly spent and will not require a third round of BAILOUTS FROM NATIONS THAT ARE BORROWING MONEY FROM OTHER NATIONS…. Ohhh your telling me the GREEKS are RIOTING IN THE STREETS. tearing up government and public property, not making enough changes necessary, but just HANDING THEM SOMEONE ELSES MONEY TO MAKE THINGS RIGHT, TODAY… mabey we can hope things will just work out better this time… ya thats it…. HOPE AND CHANGE…. HOPE AND CHANGE… HOPE THAT THINGS CHANGE FOR THE BETTER OR WERE ALL SCREWED

    Report Post » smokeysmoke  
  • Snowleopard {gallery of cat folks}
    Posted on July 25, 2011 at 3:08am

    The simple matter now is that the government of Greece should either reset the system or they will bring the European Union down with them in the end…five times the Greek government has gone into default over their national debt in the last 100 years; so they most likely will do so yet again.
    http://artinphoenix.com/gallery/grimm (cat folk art; new ones added)

    Report Post » Snowleopard {gallery of cat folks}  
  • dmerwin
    Posted on July 23, 2011 at 10:00pm

    At election time we need to remember who told Europe that we would BORROW money to GIVE to them. As I recall Germany and Great Britain did not want a common currency and now you see why. We should close our bases in Europe, what is the point, to help fund their economy? Bring the troops and the money home. We cannot afford it anymore. And, if the Europeans cannot refuel their planes and have no recon aircraft we can SELL them some. Let them deal with Libya.

    Report Post » dmerwin  
  • davecoolworld
    Posted on July 23, 2011 at 8:12pm

    Two things are on the horizon…WWIII and a New American Revolution.
    We will know soon which happens first. The elements are all in place.

    If Obama is re-elected the revolution will happen first. If Allen West enters the race and wins, the revolution will be averted and we will survive with our Country intact after the wars have ended.

    Report Post » davecoolworld  
  • americathebankrupt
    Posted on July 23, 2011 at 6:48pm

    We are in worse shape than greece,italy,portugal,spain,Will Europe bail us out.Not A Chance

    Report Post » americathebankrupt  
    • Shooter Sarge
      Posted on July 25, 2011 at 1:10pm

      Quite simply, Washington D. C. needs an enema. Only a complete purge will sove the problem. The Tea Party is basically the “silent majority” come to life. It‘s inability to get anything done is proof that the career politicians don’t give a damn about our country anymore. Obama & Company openly thumbs his nose at America with bold face lies and and back door deals. Congress has become irrelavent. Other than a complete and open revolution, I fear there is no hope. I pray to God that I am wrong. I am open to suggestions.

      Report Post »  
  • acejoker
    Posted on July 23, 2011 at 12:37pm

    Sounds like something Obama negotiated.

    Report Post »  
  • softunderbelly
    Posted on July 23, 2011 at 12:25pm

    How can it be that Greece mispent OVER 800 billion dollars and this is coming as a surprise to them?
    I believe that they’re going to realize that biting the bullet and letting them go under might have been the best course. Ooops! No, then Portugal, Spain, Ireland, Italy etc. etc. would have followed immediately. Now, it will be delayed by a few months.
    This is America writ small if we continue down the same path.

    Report Post »  
  • Bermuda Onion
    Posted on July 23, 2011 at 12:23pm

    The question is, is this the American tax payer bailing them out? How much of that money belongs to the U.S.?

    Report Post »  
    • rflussier
      Posted on July 23, 2011 at 1:56pm

      We’re members of the IMF – in fact, we’re the biggest member, like the UN. I believe the 1st “bailout” cost us something like $67 billion. I read that translates to $6000 for each man, woman, and child in greece.

      Now they’re getting another similar amount.

      If anyone has actual links for the facts on this, I’d love to get it.

      Report Post »  
    • rflussier
      Posted on July 23, 2011 at 2:18pm

      So the numbers are a little fuzzy. We contribute just over 17.1% of the IMF’s budget annually, by far the largest contributor (Japan is 2nd 6.1%). But here’s an interesting piece of information regarding this whole pile of stink:

      http://mcmorris.house.gov/index.cfm?sectionid=96&sectiontree=25,96&itemid=1912

      I really like that Jim DeMint. Now, he should go to work on the UN.

      Report Post »  
    • ALL4FREEDOM
      Posted on July 23, 2011 at 5:04pm

      Ah! you hve just discovered why Obummer is REALLY so on fire to get 2 – plus trillion in borrowing authority from us poor suckers: Uncle Sam is the biggest contributor to the IMF. Europe doesn‘t have enough cash to cover all of Greece’s problems – they will still need yet another bailout – and will be next to being genuinely broke (not enough fake money) when Italy comes calling, as they soon will. They CANNOT paper over this problem, but they will continue to try. Guess what: WE CAN’T, EITHER. We‘ve only gotten away with it this long because the dollar is the world’s reserve currency. Fiat currencies are done for; governments keep printing money (inflation) until it becomes worthless and no one will accept it. Why do you think gold prices are sky high? Look at it this way: in 1916 when the arch-Progressive President Wilson got us going toward the cliff, gold was $16.00 an ounce. Well, we have arrived at our destination. Monday, it closed at $1,607 and change. Congratulations! The Mighty US Dollar is now worth SEVEN TENTHS OF A CENT. Wow! Gee! Let’s keep printing and borrow some more! It sounds horrible, but really, the best thing we could do is NOT raise the debt limit, and force the the Government to shrink by at least half. It would be VERY painful to do it now. But if we wait, the pain will be unimmaginable.

      Report Post »  
    • vennoye
      Posted on July 23, 2011 at 5:40pm

      Of course we are on the hook for part of this……they say 27%……I wonder how much more in other forms.

      Report Post » vennoye  
  • The Bagginator
    Posted on July 23, 2011 at 10:57am

    “My Big Fat Greek Bailout”. LOL … hilarious …. I love it !

    Report Post »  
  • boca_chica
    Posted on July 23, 2011 at 9:44am

    I hope we are not helping to ride this rollercoaster to the bottom. We already sent 400 billion to europe‘s banks through AIG’s bailout(by the U.S. taxpayer) and I see no reason to spend more( of course our government likes to spend money-on anything-and then say we need to raise taxes so they can spend more(see shrimp on treadmill)) on a country that needs to fail, to re-organize the way they do things. The government of the last 20 years has the idea we should look like europe in how we govern. Why? Control. The parent syndrome. Tribalism ( My own ideas about why people do what they do when in power-even when it’s just the local town government( see Bell, CA). I have a bad feeling we Are sending money to “bail out” greece. More spendaholics, shopaholics in our government-both sides.

    Report Post »  
  • Revere2
    Posted on July 23, 2011 at 9:20am

    This is the LEFT in action!!

    Report Post » Revere2  

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