On Russia Today via Zerohedge:
- ”This is a bailout of the banking community… especially in France but of course also in Germany.”
- Questionable whether the French banking system could take the hit, estimated at 35 billion euros. This would raise questions about their Spanish, Portuguese and Italian bonds. This is not the end, but the “end of the beginning.”
- How does this help the Greek people? They will be “paupers in Europe.”
- There is a remedy. The remedy is that Greece could leave the Euro. If it were to bring back the drachma, the currency would be very, very cheap. This would bolster tourism and exports. London is full of foreign shoppers now that the pound is down 25%.
- Soveriegn bankruptcy is the normal and healthy procedure. Bankers take the hit they deserve.
- Great political flaw in the euro, trying to join cultures that don’t want to join. Angela Merkel is not being generous. Spending taxpayers’ money is not generousity. She’s trying to salvage a bankrupt philosophy.
- Moral hazard issue is not being talked about. This gives a green light to Spain, Portugal, etc to spend away.
- The truth is unpalatable. Giving an over-indebted country more debt is not the solution. We need to restructure the debt and punish the irresponsible banks and investors.
- We should never compromise with bailouts, and certainly not on Greece, which is just 2% of the European economy.