Trichet Says Risk Signals Are Flashing Red as Debt Crisis Threatens Banks
I love this guy. Keep talking baby and let's see if we can get a panic going and take a ride on the short side of stocks.
Well, at least this warning is a blatant admission that the French and German banks are the issue. They cannot take a haircut because their capitalizations positively stink. On one level, I wish the Greek people, before succumbing to debt and tax slavery to prop up banks that took risks they knew were risks, understood that they actually are in a powerful position right now. They have the power to take down banks and monetary authorities through default. Of course, if that happened, there would be no near-term access to debt markets, and would also force austerity as a result. But I'd rather face that austerity than debt slavery austerity.
Icelandic people drafted the rough sketch, if not the blueprint.
It upsets me that the buyers of the Greek bonds were chasing high interest rates, which are high to compensate for the high risk involved, think that they should assume none of the risk. Sound like the same bank bailout moral hazard to anyone else?
Sound like the same bank bailout moral hazard to anyone else?
Yes. The role of Government is to subsidize poor decisions and punish good ones. It's what they do.
I would love to see this thing come down, for my own selfish interests I guess. For those who get their 401k pummeled, I am sorry. You are going to get it on both ends. First a decline in your portfolio, next by currency devaluation.