Comments on: Euro zone medicine not working on banks http://blogs.reuters.com/great-debate/2010/05/18/euro-zone-medicine-not-working-on-banks/ Mon, 20 May 2013 00:19:37 +0000 hourly 1 http://wordpress.org/?v=3.4.2 By: Donbasilio http://blogs.reuters.com/great-debate/2010/05/18/euro-zone-medicine-not-working-on-banks/comment-page-1/#comment-30352 Donbasilio Wed, 19 May 2010 09:37:36 +0000 http://blogs.reuters.com/great-debate/?p=7179#comment-30352 It is not "quite likely" that Greece will be forced to restructure its debts in the medium term... The assets of the Greek state are higher in value than its total debt of 300bn. Current cash deposits in Greek commercial banks are also almost equal to the same amount.Finally,total private external and internal debt is much smaller that in any other Eurozone country and the actual size of the Greek economy is at least 40% larger than official data. It is amazing how shallow are almost all analyses and how unfounded are most predictions about the future of the Greek economy! It is not “quite likely” that Greece will be forced to restructure its debts in the medium term…
The assets of the Greek state are higher in value than its total debt of 300bn. Current cash deposits in Greek commercial banks are also almost equal to the same amount.Finally,total private external and internal debt is much smaller that in any other Eurozone country and the actual size of the Greek economy is at least 40% larger than official data.

It is amazing how shallow are almost all analyses and how unfounded are most predictions about the future of the Greek economy!

]]> By: nbywardslog http://blogs.reuters.com/great-debate/2010/05/18/euro-zone-medicine-not-working-on-banks/comment-page-1/#comment-30347 nbywardslog Tue, 18 May 2010 19:53:54 +0000 http://blogs.reuters.com/great-debate/?p=7179#comment-30347 Seems to me that once the ECB agreed to swap every piece of junk on sale for cash, the ultimate mug was always going to be the European taxpayer....and Asian/US taxpayer indirectly in due course. As each week passes, the markets are mollified for a day or two - and then the doubts return. They return because without wholesale reform, the Eurozone will be a risk too toxic for most investors and lenders. And the problem with that depth of reform is, you can't do it in a week, a month...or even a year. There is a silver lining to all this,in that a fundamentally undemocratic and hubris-riddled SupraState will founder and need the approval of its citizens. Bu for the more 'ordinary' of those citizens, this will be hard to see for some time. http://nbyslog.blogspot.com/ Seems to me that once the ECB agreed to swap every piece of junk on sale for cash, the ultimate mug was always going to be the European taxpayer….and Asian/US taxpayer indirectly in due course.
As each week passes, the markets are mollified for a day or two – and then the doubts return. They return because without wholesale reform, the Eurozone will be a risk too toxic for most investors and lenders.

And the problem with that depth of reform is, you can’t do it in a week, a month…or even a year.

There is a silver lining to all this,in that a fundamentally undemocratic and hubris-riddled SupraState will founder and need the approval of its citizens. Bu for the more ‘ordinary’ of those citizens, this will be hard to see for some time.

http://nbyslog.blogspot.com/

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