Once again, Europe is following the “change the rules, when things don’t work out” plan of the United States. Otherwise known as “save the big banks and screw everyone else“.
The European Investment Bank, owned by the 27-member bloc, is getting exemptions from Greek debt writedowns in the same way as the euro area’s central bank, according to two regional officials familiar with the matter.
The European Central Bank negotiated a deal to avoid the 53.5 percent loss on principal that’s costing private investors as much as 106 billion euros ($143 billion). The EIB, which unlike its Frankfurt-based counterpart represents the entire European Union, also owns Greece’s debt and is sidestepping the so-called haircut in the same way, said the officials, who declined to be identified because the plan isn’t public.
This little loophole is in addition to the IDSA future decision to make a default not a default.
Didn’t gg just write about these unintended consequences?
“Some of the decisions that have been taken recently may make re-accessing the capital markets harder, rather than easier,” Kraemer said in an interview with Bloomberg Television’s Linda Yueh in London today. “Many of these decisions may actually make it harder for countries like Portugal to return to the markets.”
It’s their system. We’re just livestock. If they want to rob, rape, loot and pillage once in a while, who’s to stop them?
Comment by Lore — March 1, 2012 @ 4:01 am