Sunday, August 2, 2015

I am just wondering how much longer this Greek tragedy is going to drag on. I can understand why Eurozone leaders do not want to eject Greece from the Eurozone because they are unwilling to admit that they got it wrong as far as this artificial currency is concerned and that they broke their own rules when Greece entered the EZ. However, surely even they must realize that throwing good money after bad (as they will do if yet another bailout is agreed) is nonsensical. Rather than wringing their hands at a delay to the talks, it might be better to scrap them altogether and let the Greek government take full responsibility for its economic future. If that involves Grexit, so be it .... "European Central Bank board member Christian Noyer has called for an immediate recapitalization of banks after bail-out talks are concluded. Creditors have estimated banks will need an injection of up to €25bn to return to health." The question I would ask is "Where will this money come from ?" Will the Luxembourg Lush once again unilaterally decide that the EFSF can be used again just to spite the UK ? Will the ELA limit be raised ever higher which will definitely annoy the German taxpayer ? Of course however they manage to get the funding through one thing is for certain, the moment it goes in, the Greek population will immediately withdraw it and so the circus will continue going around and around. The eventual outcome will be the same no matter how hard they try to prevent it, Greece will either leave or be cast out of the EZ.

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