Greece? Hmmm... You borrow at one and buy at ten You use the spread to bury the dead You bank it at four and Repo more Then go knock on the ECB

Greece? Hmmm... You borrow at one and buy at ten You use the spread to bury the dead You bank it at four and Repo more Then go knock on the ECB's door If you want a detailed explanation of how that trick worked - the moral hazard trade that European banks took advantage of when the Euro centralized money bu not monetary policy - and how a lot of people are trying to blame sweep that under the rug and get other people ("the poor", mainly) to pay for it by blaming Greece and insisting on dangerous austerity programs, highly recommend Mark Blyth's[1] recent lecture[2]. [1] Prof. econ, Brown University and hilarious lecturer [2] https://www.youtube.com/watch?v=B6vV8_uQmxs#t=673 https://www.youtube.com/watch?v=B6vV8_uQmxs#t=673 (note: #t=673 to skip the unnecessary introduction)