Comments on: How the Greek crisis is the ECB’s fault http://blogs.reuters.com/felix-salmon/2010/04/29/how-the-greek-crisis-is-the-ecbs-fault/ A slice of lime in the soda Sun, 26 Oct 2014 19:05:02 +0000 hourly 1 http://wordpress.org/?v=4.2.5 By: Orphe_D http://blogs.reuters.com/felix-salmon/2010/04/29/how-the-greek-crisis-is-the-ecbs-fault/comment-page-1/#comment-14267 Fri, 30 Apr 2010 18:10:48 +0000 http://blogs.reuters.com/felix-salmon/?p=3619#comment-14267 – To Bailout Greece or Not to bailout? Please weigh in! read more about Bailouts in a free market economy only postpone Doom’s day: http://economicsforliberty.wordpress.com

– Greek default: the winners and losers…: http://wp.me/pPdcm-3b

– Greece’s Debt Crisis: A Sign of Things to come to a Hugely Indebted America? Read on at http://wp.me/pPdcm-2P

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By: sedrak http://blogs.reuters.com/felix-salmon/2010/04/29/how-the-greek-crisis-is-the-ecbs-fault/comment-page-1/#comment-14266 Fri, 30 Apr 2010 17:58:29 +0000 http://blogs.reuters.com/felix-salmon/?p=3619#comment-14266 Sensei,
Well i guess some governments were lured by the idea that joining a single currency union would prevent them from printing money and spending out of hand, but i guess the discipline part never came.
But dont forget also that EU is one of the largest if not the biggest trade zone which has its obvious benefits so that would be a reason to want to join the EU as well, Eurozone, thats a little different.

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By: Ghandiolfini http://blogs.reuters.com/felix-salmon/2010/04/29/how-the-greek-crisis-is-the-ecbs-fault/comment-page-1/#comment-14240 Fri, 30 Apr 2010 06:32:43 +0000 http://blogs.reuters.com/felix-salmon/?p=3619#comment-14240 Exactly Sensei, Britain the most obvious example. The US is a consistent culture/ethic, the Eurozone has too many different and varied detrimental personalities, it will never work.

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By: Sensei http://blogs.reuters.com/felix-salmon/2010/04/29/how-the-greek-crisis-is-the-ecbs-fault/comment-page-1/#comment-14237 Fri, 30 Apr 2010 05:43:36 +0000 http://blogs.reuters.com/felix-salmon/?p=3619#comment-14237 I don’t understand the incentives here: “Given the eurozone provides easy access to cheap money, it is no wonder that many more nations want to join.”

Aren’t the real costs of joining now self-evident?

Let’s take Greece: joining the EU gave them access to “cheap” money to finance spending. But how is that cheaper than just spending drachmas? Drachmas were essentially costless. Isn’t costless better than cheap? The Greek government could create (by spending) as many drachmas as they wanted. They didn’t need to go out and find drachmas in the way they have to acquire (and pay back) Euros.

I really don’t understand why any European nation thought joining the EU was a good deal when compared to actual fiscal and monetary sovereignty.

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By: Ghandiolfini http://blogs.reuters.com/felix-salmon/2010/04/29/how-the-greek-crisis-is-the-ecbs-fault/comment-page-1/#comment-14215 Thu, 29 Apr 2010 21:10:37 +0000 http://blogs.reuters.com/felix-salmon/?p=3619#comment-14215 Anyway, always moving along:

“any given nation’s funding cost” – now there is an interesting concept.

After all the GS insights, I am surprised they call it ‘crazy junk products issued by Goldman Sachs’. Europe got caught out on a deal, that’s what arbitrage is all about, thousands of traders live for that moment, fair and square.

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By: umeshgeeta http://blogs.reuters.com/felix-salmon/2010/04/29/how-the-greek-crisis-is-the-ecbs-fault/comment-page-1/#comment-14213 Thu, 29 Apr 2010 18:58:53 +0000 http://blogs.reuters.com/felix-salmon/?p=3619#comment-14213 So isn’t it finally the battle between those European banks who have bought these junk Greek bonds with associated lucrative rates (who want to get bailout from European Tax Payers now that bets turned out too bad) and the European Public?

In other words does Merkel need to get approval for European TARP? At least American TARP was for American Banks. Here seems like European TARP (that is what EU/IMF bailout of Greece is) for some German banks, some non-German banks while keeping intact spending habits of Greeks who in the first place were instrument of these games.

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By: Eric_H http://blogs.reuters.com/felix-salmon/2010/04/29/how-the-greek-crisis-is-the-ecbs-fault/comment-page-1/#comment-14212 Thu, 29 Apr 2010 18:28:09 +0000 http://blogs.reuters.com/felix-salmon/?p=3619#comment-14212 I don’t have access to the article, so correct me if I’m wrong, but it seems that they are saying that the banks caused the governments to issue excessive debt. Maybe that’s part of the story, but politicians hardly need any urging on this. I’d also want to know exactly how the booty from the spread between Greek bond rates and ECB repos got divided between the banks and the politicians.

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By: Ghandiolfini http://blogs.reuters.com/felix-salmon/2010/04/29/how-the-greek-crisis-is-the-ecbs-fault/comment-page-1/#comment-14209 Thu, 29 Apr 2010 16:14:23 +0000 http://blogs.reuters.com/felix-salmon/?p=3619#comment-14209 More like Mills and Boon, at the rate you are cranking out half-baked articles and appear on the front page of this magazine. Quite vogue.

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