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Bondholders To Lose 53.5% In Greek Bailout

From a mixed emotioned Associated Press:

Greece secures bailout to avoid debt default

February 21, 2012

BRUSSELS (AP) — Greece won a second massive financial bailout in the early hours of Tuesday morning when its partners in the 17-country eurozone finally stitched together a euro130 billion ($170 billion) rescue, meant to avoid a potentially disastrous default and secure the euro currency’s future.

Bear in mind that $170 billion dollars would probably not even bail out one of our smaller states.

But the patchwork of measures – including the implementation of austerity measures in Greece and approval by skeptical German and Dutch Parliaments – required to give the rescue even a chance of success means it’s unlikely to be the end of the continent’s debt crisis

In other words, this bailout still depends upon Greece acting fiscally responsible. Which is highly unlikely.

The finance ministers from Greece and the other 16 countries that use the euro wrangled until the early morning hours over the details of the rescue, squeezing last-minute concessions out of private holders of Greek debt

How heroic of them — to punish the people who lent Greece money in the first place. Hopefully, they will learn their lesson and never invest in Greece again.

According to the New York Times, "Greece’s private investors — mostly banks and investment funds — have been asked to take a face value loss of 53.5 percent on their bonds." Which must be Greek for ‘social justice.’

The accord, which had been months in the making, seeks to reduce Greece’s massive debts on all fronts, with both private and official creditors going beyond what they had said was possible in the past.

On top of the new rescue loans, Athens will also ask banks and other investment funds to forgive it some euro107 billion ($142 billion) in debt, while the European Central Bank and national central banks in the eurozone will forgo profits on their holdings

Including Greece’s first bailout worth euro110 billion ($146 billion), the new deal means every Greek man, woman and child will owe the eurozone and the IMF about euro22,000 ($29,000)

That sounds terrible.

Until you remember that, thanks to our own national debt, when Obama took office every person in the United States owed $34,000. Today it is $48,000 per person. By election day, it will be more than $50,000 dollars for every man woman and child.

This article was posted by Steve on Tuesday, February 21st, 2012. Comments are currently closed.

One Response to “Bondholders To Lose 53.5% In Greek Bailout”

  1. GetBackJack says:

    What fool would lend money to Greece to begin with? Mess with the bull, you get the horns. Or do current day banker types not know anything of classical history such as the unspeakable calamities that were set loose during the debacles of Dionysius worship? I’m looking at you, Grecians. Or, the throne altar at Pergamum, what the Lord Jesus Christ himself referred to as the “seat of satan”? Their love of other men’s hinder parts for recreational booty? The very concept of democracy which, until recent times, was known as mob rule?

    Jeez, I guess my backwoods self-education was more complete than the lunatics who “control the money”.

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