Friday, 5 February 2010

more than a greek tragedy

Dante or Ponzi?

This is about to become a EUROpean tragedy; while failing Greek debts will be a problem for Euroland it could well ignite a global disaster once Spain and/or Portugal, Ireland, Belgium, not to forget Berlusconi's kingdom get into similar trouble; they all are in trouble, of course, now, but so far the lesser-in-trouble are obviously covering the more-in-trouble. The interdependency of international banks buying national bonds preferable those that pay top interest issued by countries that in the worst case will have to be bailed out by the same national banks that provide inexpensive liquidity to the international banks that in return - you guessed it - buy national bonds is a classic circulus vitiosus or, from a legal perspective, must be addressed as the most advanced Ponzi scheme ever. Let's refrain from discussing the truth or fantasy various countries, not only Greece, have put into providing the basic figures in the first place.

It is really not UK's above 9% nor the 4% share; it rather is the sheer enormity of the plain numbers, away from any percentage gobble; bailing out three relatively small countries alone will make the bank bailout look like ordering early morning tea; once this game of "Ponzi feeds Ponzi" is collapsing we will know the depression has begun.

But then, why bother, everything will be fine as long as
Mr. Trichet and the rest of the gang guarantee what they guarantee.

Carpe diem!


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