September 2, 2011
Greece is insolvent! Who Knew?
The Greeks have shown an unflagging ability to obscure and outright lie regarding their finances. The WSJ reports that perhaps as much as one trillion dollars is needed to bail out European banks. Much of that is needed due to those banks holding so much bad Greek debt. That's right, one trillion. In a 54-page report sent to hundreds of Goldman's institutional clients dated Aug. 16, Alan Brazil -- a Goldman strategist who sits on the firm's trading desk -- argued that as much as $1 trillion in capital may be needed to shore up European banks. Rumor has it that Finland wanted the Parthenon as collateral before they would loan any more money to Greece. The Greeks balked at that, understandably. Now the rest of the EU is lining up trying to secure hard assets for their bailout money earmarked for Greece. The entire Greek bailout agreement is at risk of being delayed indefinitely or blowing up. Yet, who can blame them? Loaning money...(Read Full Post)