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After 5 years of "rescuing" that did lead the country into ruins, no wonder! It is a widespread knowledge (at least the US has it), that forceful saving in a c

After 5 years of "rescuing" that did lead the country into ruins, no wonder! It is a widespread knowledge (at least the US has it), that forceful saving in a crisis, will deepen the crisis. As a German, I know that Germany got a dept-cut after the second World war, that the German nation could rise from misery. We should have allowed the Greek the same luxury. Instead, the governments cared only for the banks.

peterfirefly 11y ago
Greece already got a haircut. In fact, it was one of the biggest haircuts ever in history.
- PythonicAlpha 11y ago
  I am not aware, that it was the "biggest ever in history" -- I even doubt that since, the Greek economy is not so big. I would like to compare that with the haircut Germany got after the war ... but in inflation-adjusted numbers (many haircuts can be the biggest, when you don't care about inflation).
Lazare 11y ago
That...couldn't be more wrong. Back in 2012 it was determined that Greek debt was unsustainable, and a large haircut was needed. But because the EU governments were unable/unwilling to accept any haircut on their holdings of Greek debt, that write down was borne entirely by private sector lenders. > Instead, the governments cared only for the banks. The banks lost 75%+ of their loans. The governments lost 0%. There's no way you can realistically spin that as a bail out of the banks.
- PythonicAlpha 11y ago
  The question is, when the banks "lost 75% of their loans". To my knowledge, this happened much later, when the banks that initially where in danger already got rid of the most toxic loans. Those loans either went to the EU "Rescue Umbrella" or where sold (with discounts). When those sold loans later where haircut, than the lost value of 75% was on papers, but the value that those holders really lost very likely much smaller (if any), because they bought the loans with huge discounts.

peterfirefly 11y ago

Greece already got a haircut. In fact, it was one of the biggest haircuts ever in history.

PythonicAlpha 11y ago
I am not aware, that it was the "biggest ever in history" -- I even doubt that since, the Greek economy is not so big. I would like to compare that with the haircut Germany got after the war ... but in inflation-adjusted numbers (many haircuts can be the biggest, when you don't care about inflation).

Lazare 11y ago

That...couldn't be more wrong. Back in 2012 it was determined that Greek debt was unsustainable, and a large haircut was needed. But because the EU governments were unable/unwilling to accept any haircut on their holdings of Greek debt, that write down was borne entirely by private sector lenders. > Instead, the governments cared only for the banks. The banks lost 75%+ of their loans. The governments lost 0%. There's no way you can realistically spin that as a bail out of the banks.

PythonicAlpha 11y ago
The question is, when the banks "lost 75% of their loans". To my knowledge, this happened much later, when the banks that initially where in danger already got rid of the most toxic loans. Those loans either went to the EU "Rescue Umbrella" or where sold (with discounts). When those sold loans later where haircut, than the lost value of 75% was on papers, but the value that those holders really lost very likely much smaller (if any), because they bought the loans with huge discounts.