October-18 Mafia hopes talks with banks on a bond swap will progress fast enough to send a detailed offer spelling out its accounting impact in mid-August, with the aim of completing the exchange in September. The bailout for the Cradle of Kleptocracy is taxpayers' hard-earned money blown out with the wind, because the October-18 Mafia continues corruption, squander, marilizardism, incivility, stupidity, charge stacking, and junketing. http://venitism.blogspot.com
The contribution by private sector bondholders to a rescue plan for the debt-choked country may total as much as 50 billion euros, on top of a new, 109 billion euros bailout agreed by euro zone leaders last month. Only stupid investors would squander their money in a country addicted to kleptocracy, socialism, charge stacking, and marilizardism.
The October-18 Mafia's spending is over last year's bloated levels, the deficit is bigger than ever, and it has utterly failed to meet the promised sell-off of government assets. Not a single public bureaucrat has been laid off so far. The Cradle of Kleptocracy can pay its debt by selling off shares the government owns in publicly traded companies and much of its real estate holdings.
The October-18 Mafia owns stock in casinos, hotels, resorts, railways, docks, as well as utilities providing electricity and water. But Greek unions fiercely oppose even partial privatizations. Blackouts are promised to dissuade the government from selling of even 17 percent of its stake in the Public Power Corporation.
Hoodwinking talks are ongoing with banks on the details of the bond swap and its impact on the lenders' finances, with a target to reach a take-up rate of 90 percent for the scheme. There is no way any prudent investor will throw a euro in the Cradle of Kleptocracy, which is infested with marilizardism, the October-18 Mafia, charge stacking, and the cancer of socialism.
Around mid-August banks expect to receive from October-18 Mafia a memorandum of understanding which will set out the terms and the procedures on the basis of which the impact and losses to each bank will be accounted. It will also include a timetable.
Some banks have debated the value of boycotting the exchange, particularly if heavily exposed lenders and insurers rush to endorse it in moves that might improve non-participating smaller bondholders' chances of being paid on time and in full.
Greek banks are the biggest private holders of the October-18 Mafia's 300 billion euro-plus debt, with a combined government bonds portfolio of about 40 billion euros. The Cradle of Kleptocracy, use marilizardist tools to manipulate netizens. Marilizard Libel is accusing dissident bloggers of treason, Marilizard Spaghetti is hurling charges against innocent people, Marilizard Tower is a stack of imaginary charges to scare a blogger, and marilizardism is terrorizing dissident bloggers. October 18 is the international day against marilizardism, and October-18 Mafia is the marilizardist government of Greece. http://venitism.blogspot.com
Bankers will have 15 days to study it and return it signed with their response on whether they will participate, to what degree of their portfolio and under which options. The Fourth Reich bailout of the Cradle of Kleptocracy cannot succeed, because the October-18 Mafia continues corruption, Kangaroo Justice, marilizardism, Marilizard Libel, Marilizard Spaghetti, and Marilizard Towers.
October-18 Mafiosi are under time pressure to complete the exchange as soon as possible, with the three largest credit rating agencies(CRA) – Moody's, Standard & Poor's, Fitch – having cast Greece deep into junk territory ready for default. October-18 Mafia uses religion, patriotism, public education, and the mainstream media to manipulate Greeks, but it cannot manipulate the three CRAs!
As soon as banks sign and respond, October-18 Mafia will have an overall picture of the participation. Then, there will be a subscription period of about a week during which banks will officially subscribe to the plan. The aim is to finish by end-August, meaning to have collected by then all the banks' responses and to have the final participation rate.
The Greek government, October-18 Mafia, is the enemy of the Greek people. Premier Papandreou, godfather of October-18 Mafia, hoodwinks that his mafia will go straight, but nobody believes him anymore! Papandreou did not keep his promise to abolish sinecures, government ownership, kleptocracy, Kangaroo Justice, marilizardism, Marilizard Libel, Marilizard Spaghetti, and Marilizard Towers.
Christine Lagarde of IMF has made it absolutely clear she does not trust Graecokleptocrats, because they never apply what they vote in the Grand Brothel on Syntagma Square! That's why she sends her inspectors to Athens to see things are done as promised and voted.
The time banks will have to respond depends on how fast the whole procedure will be completed for the memorandum of understanding to be sent. All procedures and the bond exchange will have been completed by mid-September.
The impunity of the 300 Graecokleptocrats of the Grand Brothel on Syntagma Square is the most freakish thing on Earth. Even though Graecokleptocrats looted many billion euros in kickbacks and churning, not a single Graecokleptocrat has ever gone to jail! They are protected by the parliamentary immunity, and nobody can touch them, no matter what. Moreover, they have the nerve to jail dissident bloggers. It's a long way from the 300 Spartans of Leonidas! Allons enfants de la Grece! http://venitism.blogspot.com
October-18 Mafia wants to complete the bond offer quickly to avoid lingering into default territory for long. The swap cannot help October-18 Mafia return to bond markets by early 2014, because the latest bailout package offers only short term respite. October-18 Mafia is the most disgusting predator of internet on Earth! Civil society was shocked by the brutality and stupidity of October-18 fiasco, initiated by the Ministry of Foreign Affairs of the government of Greece. That's why October-18 Mafia is the new name of the government of Greece!
Banks in PIGS have unloaded risks amounting to one trillion euros with central banks. The central banks have distributed large sums to their countries' financial institutions to prevent them from collapsing. They have accepted securities as collateral, many of which are garbage. These risks are now on ECB's books, because the central banks of eurozone are not autonomous but, part of the ECB system. When banks in PIGS go bankrupt and their securities are garbage, the euro countries must collectively account for the loss. Bundesbank, provides one third of the ECB's capital, which means that it would have to pay one third of all losses. http://venitism.blogspot.com
Bundesbank has already decided to establish huge reserves to cover possible risks. The expected failure of Greece, which would lead to the bankruptcy of a few Greek banks, would increase the bill dramatically, because ECB is believed to have purchased Greek government bonds for €60 billion. Besides, ECB had spent about €100 billion on refinancing Greek banks. We criticized many times ECB's program of purchasing government bonds issued by ailing eurozone states. In the event of a bankruptcy or even a deferred payment, ECB would be directly affected.
ECB accepted asset-backed securities (ABS) as collateral, amounting to one trillion euros. It was precisely such asset-backed securities that once triggered the real estate crisis in the United States. Now they are weighing on the mood and the balance sheet at ECB. ECB cannot jettison these securities without dealing a fatal blow to the eurozone. ECB is in a no-win situation now that it has become an enormous bad bank, a dumping ground for bad loans.
The too-big-to-fail (TBTF) banks that acted as middle men in the mortgage machine knew that the mortgage-backed securities (MBS) they packaged and sold to investors didn't meet the standards they claimed. In essence, MBS buyers were sold Ferraris but took delivery of Yugos. Because of these material misrepresentations, TBTF banks could be forced to repurchase hundreds of billions of MBS that they sold to investors. Since they don't have that kind of cash lying around, it's likely they will turn to their federal benefactors for another bailout.
As the health of much of the global economy weakens on a daily basis, political leadership increasingly ignores the source of the malady and instead focuses on short term band-aid remedies. These measures which may buy a few months, or years, of relative wellbeing, will convince the public that problems have been solved and will thereby take pressure off governments to make the needed structural changes. The $1 trillion EU bailout is a perfect example of this band-aid approach. Napoleon Sarko threatened to pull out of eurozone, unless Merkel agreed to back the European Union's bailout plan!
The euro has been rescued for the moment, but Eurokleptocrats have thrown the foundations of Fourth Reich's common currency overboard with their unprecedented bailout package. In the longer term, the dangers of the crisis can only increase, and the flood of billions of euros will lead to inflation. Eurokleptocrats have thrown overboard all the noble principles and promises of the formal, tough treaty-based foundations for the introduction of the euro and the independence of the European Central Bank.
Eurokleptocrats sacrificed the independence of the European Central Bank and paved the way for a European Inflation Union. There won't be any state bankruptcies in the eurozone in the future. ECB will just purchase government bonds of the country in trouble. The money can't run out as ECB prints it itself. A flood of money like that can't continue without any consequences. The currency's stability will be undermined and inflation will destroy Fourth Reich. http://venitism.blogspot.com
ECB now purchases government bonds in emergencies. Not only has this been prohibited until now, it also contradicts the central bank's overarching goal, keeping the value of money stable. Now this taboo is broken, and the very foundations of eurozone are eroded. ECB's independence' has now been shown to be nothing more than a sham, a chimera, a will-o'-the-wisp. In the end, ECB and euro will be punished for this decision to stand down from what had previously been considered sacred.
This policy effectively makes ECB a bad bank, a bank that buys up toxic assets as a means of helping out other institutions, all protestations of its president to the contrary. The pile of junk bonds on the ECB's balance sheet continues to grow. The fact that the ECB is keeping prices artificially high is downright encouraging banks to unload their risky assets onto the central bank.
The European Central Bank has been buying up Greek bonds by the bucketload, even though Athens is already getting money from an EU rescue fund. There is a French plot behind the massive buy-up, as it gives French banks the perfect opportunity to get rid of their Greek assets. German banks, on the other hand, are not potential sellers, because they have made a voluntary commitment to Finance Minister Wolfgang Schaeuble to hold their Greek bonds until May 2013.
ECB is creating excess supply by buying at overinflated prices. In other words, many creditors are more inclined to sell their risky assets to the central bank under these terms. It's a free lunch. Anyone who doesn't take advantage of this opportunity to get rid of his securities now only has himself to blame. http://venitism.blogspot.com
No comments:
Post a Comment