The Greek hostage crisis
This isn’t about “bailing out Greece.” Yes, the Greeks owe about $500 billion, but they already have spent the money.
This is about bailing out the banks that lent to them.
The biggest creditors are French banks. The second biggest are the Germans. The third biggest are the British. I’ll bet a lot of Greek bonds are now held by hedge funds.
These are the people asking for public funds.
What’s happening in Europe right now isn’t a financial crisis. It’s a hostage crisis.
Once again, we are all being held hostage by a bunch of bankers. “Give us a bailout,” they’re saying, “or else the economy gets it!”
Maybe it’s time to call their bluff.
Perhaps Europe should let Greece default. Let it go bust. Force the bond holders to take their losses.
If you invest in a stock that falls, you don’t get made whole.
If you buy bonds in a company or institution that collapses, you don’t get your money back. So why here?
They call it “risk capital” for a reason.
This is Bear Stearns all over again. It’s AIG all over again.
They call it “risk capital” for a reason. Exactly.
If the banksters are stupid, they made a bad bet. If the banksters are evil, they knew the bet was bad, and are using the #FAIL as a pretext for financializing the State. If the banksters are stupid and evil .... Well, I think we win. But that will take time.