Opinion – Greek banks prepare plan to raid deposits to avert collapse – FT.com – John Gelmini

The need for bail ins was established by Merkel and the EU at the beginning of last year and the Cypriot “hair-cutting ” some set the precedent and represented a dry run.

Dr Alf is therefore right when he says bail ins are attractive to Greece’s creditors.

By a process of elimination, we can see that the Greek Government are once again stretching reality:

1) The Greek Government has no money of its own and exports are not significant
2) Tourism produces too little money in taxes to cover the costs of providing public services
3) With no new bailouts, Greece has no money except what is left in bank deposits, so that is the only source of money, given that Russia refuses to buy Greek bonds, China will only lend against secured assets and the IMF has run out of patience.

John Gelmini

Opinion – Europe’s future in Greece’s hands | The Economist – John Gelmini

Greek politician Alexis Tsipras (center) among...

Greek politician Alexis Tsipras (center) among his comrades, during a demonstration against privatization of Pension System. (Photo credit: Wikipedia)

Dr Alf brings us yet another good article about Greece and the hapless Tsipras. He was elected on the basis of a lie and telling the Greek people what they wanted to hear. Varoufakis, another fantasist, who never answers questions directly, is in the same mould.

Greeks have to learn the lesson that there is no free lunch, which means that they can no longer go on retiring early, paying themselves unfunded pensions, exporting nothing, never reforming their economy and blaming the Germans and the IMF for all their ills.

Tsipras and his sorry excuse for a Government should have been getting this difficult message across to his people but instead he lets people like Angela Merkel do so, in the knowledge that Greeks, as a whole, would rather not change and will choose to disbelieve what she says because of their folk memories of World War II.

He will have his referendum but I fear reality will not sink in. That means yet another bailout, the resignation of Tsipras and his hench-people and political upheaval until the bailout runs out yet again, just like the last time, the time before that and the time before that.

Tsipras will, of course, not suffer, and Varoufakis will no doubt be given a lucrative job by someone with more money than sense, while the Greek people at the bottom end of the economic scale and the rest of us will pay the price for this folly.

John Gelmini

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