Another day, another buildup to another summit that will fail miserably due to Germany not being on board. Any kind of bond sharing has been ruled out by Germany without the surrender of national budget sovereignty. Greece’s plan to make their austerity terms less onerous is doomed before it begins, as Germany is totally uninterested in lightening the weight of reforms.
Any chance, however tiny, that Greece had of renegotiating is possibly on the ropes as Greece’s Prime Minister and Finance Minister definitely won’t make it to the summit. Not that Greece even has a Finance Minister yet.
Spain has officially, sort of, asked for a bailout, though they’re not entirely sure how much money they’ll need yet, besides “lots”. Cyprus immediately joined them in the queue, implying that China and Russia weren’t willing to write a check to bail out the island nation’s doomed banks. Spain is rushing in new controls on cash transactions and foreign accounts, perhaps to put the squeeze on their “bank joggers”. The problem with these “tax evasion” methods is that they’re indistinguishable from the steps you would start taking to lock down the movement of money prior to a redenomination, so the more you try and fix the problem (tax evasion) the more people start sweating and bank jogging, and thus the more false positives you get (nailing people for “tax evasion” who had no intent to defraud the government, just to avoid being defrauded by the government) which makes people think that the tax is bullshit which makes it more acceptable to evade taxes which…
Is it any wonder that Switzerland is filling up with cash and gold?
- Greece brain drain ‘wrecking my social life’ | BBC News
- Nervous investors fill Swiss safes with cash, gold | NY Times
- Testing for forebearance | FT Alphaville
- Fitch junks Cyprus | FT Alphaville
- Cyprus needs bailing, says Cyprus | FT Alphaville
- Gremany tells Greece to stop asking for help and start cutting budgets
- Greece’s ailing leaders to miss EU summit on Eurozone crisis | Guardian
- Just another panic Monday in Euroland | Barry Ritholtz
- Moody’s downgrades Spanish banks | FT Alphaville
- Germany’s Finance Minister lectures Obama on debt, defends Euro, says German referendum needed soon | Mish’s Global Economic Trend Analysis
- Greek government’s targets to re-negotiate bailout programme | Keep Talking Greece
- Soros: How to end the Euro Crisis | Pragmatic Capitalism
- Rapanos “Resigned” before be sworn-in as Greece’s Finance Minister | Keep Talking Greece
- Athens stock exchange plunged -6.84% | Keep Talking Greece
- Greek PM Samaras released from hospital after eye surgery | Keep Talking Greece
- Capital controls hit span: government laws prohibit cash transactions over 2,500; minimum fine of 10,000 for failure to report foreign accounts | Mish’s Global Economic Trend Analysis
- Merkel hardens resistance to Euro-area debt sharing | Bloomberg