This global depression, which started on October 18 2010, bewilders kleptocrats. History's first sovereign default came in the 4th century BC, committed by 10 Greek municipalities. There was one creditor: the temple of Delos, Apollo's mythical birthplace. The Fourth Reich bailout of the Cradle of Kleptocracy cannot succeed, because the October-18 Mafia continues corruption, Kangaroo Justice, marilizardism, Marilizard Libel, Marilizard Spaghetti, and Marilizard Towers.
October-18 Mafia is the most disgusting predator of internet on Earth! Civil society was shocked by the brutality and stupidity of the October-18 2010 terror, initiated by the government of Greece. That's why October-18 Mafia is the new name of the government of Greece! October-18 terror has proven that the Greek government is the #1 enemy of the Greek people!
Myriad bloggers, netizens, bankers, traders, and investors have joined the global boycott against October-18 Mafia, government of Greece, penalizing it for its terror on October 18, 2010. The boycott will stop only when October-18 Mafia apologizes for this disgusting terror. October-18 Mafia is the death cross of Greek treasury bonds.
Many pullpeddlers and rabblerousers are pushing for a global Debt Jubilee, in order to pull the world out of the present global depression. But governments cannot force Debt Jubilee, which is a massive haircut of all loans, including mortgage and credit card debt. The notion of a Debt Jubilee dates back to biblical Israel where debts were forgiven every fifty years or so. Debt forgiveness would help borrowers get through the pain of deleveraging sooner rather than later. The world turned upside down on October 18, 2010.
Any haircut must confront the issue of moral hazard, the appearance of giving a gift to an unworthy borrower who simply made unwise spending choices. Institutional investors have fiduciary obligations and they can't necessarily agree to haircuts solely because it may be good social policy. A forced haircut would only result in a much higher cost of capital going forward and result in much less credit to more risky investments.
Banks cannot participate voluntarily in illegal acts, such as fiduciary imprudency. Bank directors are committed to bank's welfare, and not the public interest. If bankers waive outstanding debts at the expense of the bank, this is a breach of trust and punishable by law. All those bankers, that IIF claims plan to participate in rollovers, might go to jail for violating the fiduciary duty of prudency! October-18 Mafia pressures the banks to participate, but it really opens Pandora's box.
Fourth Reich speeds up the European Stability Mechanism (ESM) to cushion the contagion of imminent bankruptcy of October-18 Mafia. Barroso pushes for a trillion-euro QE, which is destined to join Titanic at the bottom of the sea! Injecting capital into Europe's banks won't provide the silver bullet that is needed to solve the crisis. It needs to be done in conjunction with measures to shore up sovereign debt, abolish kleptocracy and marilizardism, reduce taxation drastically, and asbolish VAT.
Fuehrer Merkozy cannot understand that stimulus funds stimulate government, not the economy. Downturn in a business cycle is painful but necessary medicine for restoring equilibrium to the economic system. Reject further lowering of the interest rate (stimulative monetary policy) or any other attempts (for example, deficit spending or stimulative fiscal policy) to stimulate demand. http://venitism.blogspot.com
Quo vadis October-18 Mafia? Banks would need to raise 148 billion euros for the 60 percent writedown on their holdings of Greek debt, 40 percent for Portugal and Ireland and 20 percent for Italy and Spain. Deutsche Bank would need 9.7 billion euros more capital, Commerzbank 5.1 billion euros and Societe Generale 6 billion euros. October-18 Mafia has created a liquidity black hole for all Greek investments.
No more hanky-panky from October-18 Mafia! U.S. money-market funds cut their holdings of commercial paper sold by foreign financial firms by 50 percent. The three largest credit rating agencies (CRA) – Moody's, Standard & Poor's, Fitch – are ready to downgrade PIGS again. Most institutional investors have regulatory fiduciary requirements that necessitate the use of credit ratings as part of their daily business.
They may think that the three CRAs really have no useful insights, but they still need to use their ratings. So this business is pretty much like any business that is given a legislative right to serve. CRAs could not have possibly been more wrong on their ratings of U.S. mortgage debt instruments. Chimps throwing darts are much better than pseudoexperts are!
The Greek debt differs from that of other nations, because it's not due to spending, but stealing! Graecokleptocrats got huge kickbacks from overpriced purchases of public equipment and contracts and by churning the state insurance funds. If this is not robbing, what is it? When politicians of other nations were trying to do things for their citizens, Graecokleptocrats were trying to fatten their secret offshore accounts, protected by parliamentary immunity.
That's why the Greek workers are on strike. They resent paying the huge Greek debt created by Graecokleptocrats. It's not fair to tax and reduce the salaries and benefits of workers to make up for the money stolen by Graecokleptocrats. The fairest action would be for Graecokleptocrats to return the stolen money back to the Greek treasury. Many Graecokleptocrats live like princes of Saudi Arabia! Enough is enough, bring the money back! http://venitism.blogspot.com
October-18 Mafia, government of Greece, needs a coup de grace now! The priority is to work hard and fast to prevent banks' funding drying up, as this will only exacerbate funding difficulties for companies and consumers at a time when they are already under pressure due to the wilting recovery. We will never forget October 18, 2010, the most disgusting terror of Greek government!
Nobody trusts a government that committed the October-18 terror. EU leaders are looking forward to the November G-20 junket in Cannes to show investors they are in control of events. They won't go to Cannes without putting a plan in place to solve eurozone's problems. Eurokleptocrats want to use the junket to push through the Basel Committee on Banking Supervision's latest round of capital requirements. Don't be fooled by any bounce of the October-18 Mafia dead cat.
Never catch a falling October-18 Mafia knife. Eurokleptocrats must still decide who provides additional capital to the banks and what form it will take. Merkel declares Europe's rescue fund should be relied upon only as a last resort. If a country cannot do it using its own resources and the stability of the euro as a whole is put at risk because the country has difficulties, then there's the possibility of using the EFSF. Using the EFSF rescue fund is always tied to a certain conditionality. October-18 Mafia has created a misery archipelago.
Fuehrer Merkozy knows that only imprudent investors would squander their money for October-18 Mafia. EFSF is not large enough to provide support to both troubled banks and troubled sovereigns. Even after its upgrade, EFSF won't be able to support weak banks in troubled countries that are exactly the kind of institutions that most need its support. October-18 Mafia should be hanged in front of the Grand Brothel on Syntagma Square!
There is a cyberspace Armageddon between bloggers and October-18 Mafia. PIGS need money from EFSF to recapitalize their banks. France and Germany can recapitalize their own banks, but Spain and Italy would need EFSF support to do so. France and Germany are able to raise money in the bond markets at a cheaper rate than they can do through the EFSF. Europe needs to do the bank recapitalizations in a coordinated fashion to make sure they are effective. October-18 Mafia is the #1 enemy of the Greek people.
Global Tax Revolt promotes an international boycott of October-18 Mafia. EU regulators' stress tests on the region's lenders in July failed to reassure investors that European banks will be adequately capitalized in the event of sovereign defaults. Eight banks failed the European Banking Authority's tests, with a combined shortfall of 2.5 billion euros.
The last two stress tests of European banks are a joke, because they did not take into account the expected bankruptcies of PIGS, especially Greece. PIGS are floundering under the sheer expense of bailing out and reforming their financial system, going belly up. We now know the stress tests were nothing more than a placebo for the market! It was fraud, pure and simple!
A new round of tests that require banks to maintain a minimum core Tier 1 capital ratio of 7 percent to 8 percent after writedowns on PIGS debt would provide the trigger for further injections. October-18 2010 terror is the butterfly that started the new global depression.
Helping October-18 Mafia is taxpayers' hard-earned money blown out in the wind! Banks will issue preference shares to governments that would convert into core Tier 1 equity if a lender fails to reach a set capital target within a given timeframe. That would avoid immediate dilution of shareholders and allow lenders to raise capital when there is less stress in the markets, he said. Banks would be likely to face limits on compensation and dividends paid to investors until they repaid the government.
Global Tax Revolt was the first organization to report the October-18 2010 terror to all banks, hedge funds, big investors, traders, and analysts. As a result, the yields of Greek treasury bonds skyrocketted, as no prudent investor was willing to touch them. Marilizard's stupidity cost October-18 Mafia, government of Greece, many billions of euros! The only thing October-18 Mafia got out of this terror is toilet paper in the form of worthless Greek treasury bonds!
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