Monday, 8 March 2010

bad speculators, honest spectators part I;

Although expected, the rhetoric from le petit Emperor Sarkozy makes no sense at all. He said that he wants to “be very clear: if it were necessary, the states of the euro zone would fulfil their
commitments”, the Raven thought that the euro zone had committed that it wouldn’t bail out a failed state, but who is the Raven to say that past legislation should be something that leaders keep to, especially when manifesto pledges are mere guidelines, and listening to referendum results entirely optional.

EU leaders seem insistent that it is evil speculators that are causing Greece’s problems; it has nothing to do with it being a morally bankrupt state that lied its way into the EMU, only meeting the entrance criteria in one year (the year that it entered), that its serially cooked it books; booking EU grants as government income, ignoring military spending in their budgeting, using OTC trades to hide debt, etc. The fact that the country also has net debt exceeding its GDP and intends to run a deficit of UK proportions ~13% might have a little bit more to do with the problem than a few side bets between hedgefunds, (estimated to be less than 5% of the Greek bond market).

Sarkozy is not alone in making ridiculous comments, it appears there is at least one German with a sense of humour:

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