"Greece won't see a penny of bailout funds"

A really excellent article written in today's Telegraph UK about the ongoing farce of Greece selling its soul for a bailout that the rest of Europe really doesn't want to give them, nor thought a year ago the nation would be around to request it...

The full article written by an economist which is quite superb in its accuracy and understanding of the situation in the EU can be found here:

http://www.telegraph.co.uk/news/worldnews/europe/greece/9079430/Greece-wont-see-a-cent-of-the-great-bail-out.html

Here is a portion of the article from the Telegraph UK:

"Over the weekend, the Greek parliament voted to accept Europe’s latest demands for spending cuts and tax rises and other reforms and retrenchments. The aim was to make it marginally less implausible that Greece will pay back the hundreds of billions of euros that its neighbours are lending it. The alternative, we were told, was that it would become “ground zero” for a new financial meltdown, with its exit from the euro leading to social chaos within the country and economic chaos outside.

"So Greece’s MPs voted it through, 199 to 74 – despite the tens of thousands rioting on the streets of Athens, despite GDP having contracted for three years in a row, despite tax revenues collapsing thanks to austerity-induced depression and overt, systematic tax evasion, despite the main governing party’s popularity falling to 8 per cent in the opinion polls.

~ Beggar girl- Rhodes, Greece

"Now it won’t default or leave the single currency, and everything will go back to normal… won’t it? Almost certainly not. For a start, despite the vote yesterday, the Greeks probably won’t ever see a single cent of that second bail-out. The idea is that the eurozone will lend money to Greece, which it can use to pay off the banks holding its debt, as part of an agreement to save it from outright bankruptcy in March. But when the members of the single currency originally agreed to this second bail-out last year, Greece was not expected to last this long.

"In particular, the Slovakians, Finns, Austrians and Dutch would never have agreed to the deal if they had thought there was any chance of them actually having to pay. It was a political arrangement, spatchcocked together to force the International Monetary Fund to keep forking out for the initial bail-out. The Slovakians failed even to contribute to that first rescue package, so it was never credible that they had any intention of funding a second. The Finns have passed a law banning their government from giving any more money to Greece without collateral. The Austrians have enough trouble coping with the crisis in Hungary – to which their banks are heavily exposed – without sending money elsewhere; being downgraded by the credit ratings agencies hasn’t made them any keener to pay..."

"The truth is that Europe doesn’t want to pay – so despite all the drama in Athens, the Greeks will probably default outright in March anyway..."

~ And somehow the soulless know-it-all, piece of shit Rat investors who pushed the global markets up today based on Greece, do not understand this reality...or care to.

~ People walking past a beggar- Syntagma Square, Greece

Random Musings- Greece, America & apathy

~ A pie chart breakdown of where Greece's bailout money goes.  Only 19 cents on the dollar, or rather euro actually go back to the Grecian economy i.e. its populace.

No one respects deadlines anymore...

Frustrating... just frustrating..

The big news out of Greece over the weekend was that its leaders had just 24 hours to work out a deal with its EU, ECB & IMF creditors that would complete the selling of their nation and souls to their creditors.

Only 24 hours for Greece's leaders to agree to "the minimum wage be cut to less than 600 euros ($790) a month ($4.94/hr) and that at least one holiday allowance, the so-called 13th and 14th wages, be abolished, and pensions paid by supplementary funds should be cut by 35 percent" (AP)

Just 24 hours to agree to this harsh austerity or Default.

And what happens??   Talks extended into Monday...

Not sure what there really is to talk about.  The choices are really like an evil person saying "We will cut your left and right arm off as well as your right foot, or we will kill you outright"   How much deliberation does one need on a choice like that?  When does the pride instinct kick in?

We've learned and observed many lessons over the past 39 months.  Among them is that few to no world leader truly cares about its people, especially in a crisis, and when the choice is between reality and can-kicking, everyone including the common people want it kicked.  Happily so.

Also learned that few people in the US have really been affected so far by this recession.  Most of the people hurt and harmed were those in such bad shape from policies of the last 30 years that even in economic boom, they'd be going bankrupt, foreclosed upon and all that.  Very few others have.

You walk in most malls.. still see it bustling.. still see plenty of vapid, anti-social, technology addicted teenage morons with their headphone buds in ears and texting away without a care in the world.. Still see plenty of consumers consuming with credit cards swiping and registers cha-chinging all the live long day.. Still see people emotionally oblivious to everything outside their immediate family and more immediate needs.

The biggest lesson learned with few exceptions is that in this whole global economy narrative of crumbling banks, bailouts, recession and supposed "recovery", from politicians to investors to everyday people, there really is no one to cheer or root for.  And so few heroes.

Politicians are corrupt, bankers/financiers are evil, Investors are vermin and most everyday people won't fight back in any meaningful way.  Could be apathy or a fear that god-forbid, all their 'stuff' will be taken from them.  And the youth- they have the most cause to fight since every 18yr old college student without a silver spoon or teat to suckle upon, becomes a debt slave via student loans before legally allowed to take their first drink.  And that debt never, ever, Ever go away... Even in a bankruptcy.

In other parts of the world, youth fight back, or at least try to.

Angry Youths Attack House Of Greek President Papoulias; Hurl Rocks, Molotov Cocktails (AP) -- "About 30- 50 Greek youths arrived by motorbike and on foot just after 8 p.m, hurled a Molotov cocktail, rocks and paint at the house but stopped short of attacking the two guards at the President’s house"

In America, they sit outside in parks for days and weeks on end sipping coffee from thermoses while listening to their ipods and texting nothing important while mainstream America ignores them.

Either we've become That lazy and detached a nation, or those suffering the most still believe so much in the whole Left-Right political canard that no one wants to embarrass or hurt Obama's chances at re-election with a sincere dust-up.   I can't imagine such restraint if McCain/Palin were running the nation with exact same economic policies or even say a Bush third-term.

So, deadline extended in Greece one more day.  We still assume all will be worked out to the powerful banking interests' will...  or who knows, be extended another day.

Greece is the nation that invented democracy.   Would be nice if they be less like Athens and more like Sparta.

When know-it-alls know nothing

~ "I'm tellin' ya.. you gotta' be in the market!  Buy lotta stocks.. ya Gotta!"

Don't know which I hate more- the stock market, those who invest in it or those who report on it.  Tough call- all equally dreadful and in the case of investors and media, both worthy of a face scratching.  The reasons we've stated too often to take time to repeat here.  Suffice it to say, if you're not part of the 1%, you should be wanting to sharpen your claws as well...

But as much as I despise these entities, they also make me laugh at times.  I tend to find it humorous when cocky cock know-it-alls think they have all the answers and can accurately predict economic events based on assumption that all will work out when push comes to shove, then are proven wrong.

Here's a headline from this morning:


Emerging Stocks Set for Biggest Monthly Gain in Three on Greece Optimism (Bloomberg) -- "Emerging-market stocks rose, with the benchmark index set for its largest monthly gain since October, after Greek Prime Minister Lucas Papademos said major progress has been made in debt-swap talks... he’s “strongly committed” to reaching a debt-swap accord with bondholders that is crucial to lowering Greece’s debt burden and freeing up another round of aid before the country faces a 14.5 billion-euro ($19 billion) bond payment on March 20."

And the market rejoiced and figuratively held hands as they danced around in the garden of eternal optimism and never-ending profit making...  La La La...

But then later in afternoon...

Greek officials attack EU and IMF as debt talks stall (Guardian.UK) -- "Greek officials launched a vociferous behind the scenes attack on European Union and International Monetary Fund negotiators as talks in Athens over the country's mounting debts appeared to stall... a crisis meeting of party leaders would be called as early as Thursday to thrash out a response to an increasingly intransigent negotiating team sent by Brussels, which is demanding severe austerity measures before sanctioning a further €130bn (£109bn) of bailout funds...


"On the negotiations over the bailout funds, Greek MPs have objected to demands by the troika for further wage cuts and reductions in the minimum wage.  The troika (European Union, International Monetary Fund & European Commonwealth Bank) doesn't appear to be willing to accept any concessions whatsoever on reducing the minimum wage and scrapping bonuses," said the government aide. "No political party is willing to move either, saying wage cuts are a red line they are simply not going to cross. You tell me how this is going to be resolved. We have no idea and we're very worried.""

A&G does not pretend to hide the fact we want this to fail and overall, desire Greece to do what it should have done two years ago... Default.

 "Meowww... hate investors & banks sooo much.. Meeeowww!! Rrrr Rrrrr"

Investors and banks have not had to take any real financial hit or punishment since the global economic crisis began with Lehman Bros in Oct, 2008. That is now 39 months.  Its about time they did..  Its about time the ultra-wealthy around the world who do nothing but create misery in populaces then financially profit from it, hemorrhage Severe losses and feel real pain.

Unfortunately the way this game has been played for over 3 years, there's always some magic trick or scheme or compromise pulled from thin air (or someone's ass) to keep all the plates spinning so no one at the top financial echelon ever feels any economic pain.   So we're realistic to the probability that all will work itself out for the bankers and the Investors will continue to rejoice and 'dance'.

But Lord knows, we are not hoping for it.

And if Greece sells all of its soul to the banks, well there's always a ray of hope that the Portuguese wont.. or the Irish... or the Italians.. or the Spanish..

King Rat

Market ended today -10 pts..  yawn..   Big Deal...

Would have preferred seeing an '8' or '9' before that '10', but its ok.. we're patient.   Sincerely can't wait to turn on CNBC when the market does drop 800pts.  though we still believe they would tell their viewers to 'buy' or 'hold' rather than admit things were bad.

Now even though for the most part, we don't post during weekends, we're still quite active here at A&G, reading and listening to an array of information from a wider array of sources.  And among the psychobabble and pollyanna optimism, one quote in particular from one professional rat Investor stuck in the mind (or rather, stuck in the craw):

"Never let reality get in the way of making money."

What did he mean?  A few things actually.  First, that no matter how bad the economic news coming from Europe or Asia or even the good ole USA, if stock prices are going up, does it really matter?  And if the rats to the left & right are ignoring, you do so as well.  He also meant that ultimately it really doesn't matter to a professional Investor if a nation is crumbling or its populace is suffering.

Profit- nothing else matters.  Fear is a money-making opportunity.

Let's take the situation with Iran as an example.   Today, the European Union with immense US pressure behind it, banned the purchase of Iranian oil which caused Iran to threaten to retaliate by closing the Strait of Hormuz, through which a fifth of the world's crude is transported.

Let's put aside politics and the 'right-wrong' argument to look at this through the eyes of a sociopathic Investor rat or floor trader.  He/she is salivating at the thought of rising tensions.   Lickin' them chops at the profit to be made on investment of crude oil.  Just based on today's news alone, oil went up $1.53 to close at $99.86.

So let's say a professional investor has just invested $100k into oil based on that price.   What do you think he/she wants-  tensions to be soothed n' smoothed?   The price of oil to go down??

Doesn't matter to an investor that closing the Strait will cause gas prices to spike to possibly $5/gal or more, especially if the action is prolonged.  Doesn't matter that food prices will spike as well and that could lead to civil unrest in some nations, like in Egypt and Tunisia last year.  Just means a good time to invest in corn, wheat and other edible commodities.  Doesn't matter that a dramatic increase in the price of oil would cripple the global economy and hundreds of millions, if not billions of people would be hurt..

Nope. To an investor, its a single minded focus--  Buy today at $99.86 and hope it spikes to $150 or $200/barrel so they reap enormous profit for their sole benefit.

When you turn on financial news or hear someone extremely wealthy who made their money through investing, you should not have any admiration or respect for such vermin. Soft words and expensive threads doesn't cloak who they are--  rats.  Honestly--  you're heart should be filled with hate toward such 'things'.  For they, more than banks, financials and even corrupt politicians, are the cause of many of the problems we still are facing today.

Doesn't matter the background-  black, white, hispanic, asian... Christian or Athiest.. global investors are simply rats.   And they, the rat Investors are the "royalty". All nations, financials and corporations- in debt far beyond reasonable means of repayment and Desperate for new injections of money.. they all bow and pay homage.

This is the reality of things in the modern world.