Loans and Finance

Loans and Finance

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News and information about loans, money, debt, finance and business issues.

Friday, July 31, 2015

Tsipras Backs Varoufakis

Fearful of what might happen if Yanis Varoufakis is charged with treason, Tsipras has given him some protective cover.

The questions are:

- Will this be enough, and

- What happens of Tsipras is also charged with treason?

Thursday, July 30, 2015

Greek Bond Market To Collapse

Greece Reverts To Barter Economy

It seems that despite the "benign" intentions of the Quadriga, Greece is slipping back into a barter economy.

This will not end well!

Wednesday, July 29, 2015

Varoufakis The Traitor?


A week is a long time in politics and, having outed himself as planning a surreptitious hack of the Greek tax system in order to create a parallel currency, Yanis Varoufakis now faces the very real prospect of being tried for treason.

It is not without irony that the Quadriga (nee Troika), having overridden the Greek referendum result and turned Greece into a vassal state, is now looking around for "traitors" in order to publicly punish them:

"pour les encouragement des les autres".

Step forward Yanis Varoufakis, whose head will soon adorn the eagle headed spear of the Quadriga!

Oh, and for the record, the European commission has denounced as “false and unfounded” claims by Greece’s Varoufakis that the Quadriga had exclusive control over Greece’s tax system.

All clear then?!

Tuesday, July 28, 2015

Troika Morphs Into Quadriga



It seems that the Troika s simply not larger enough to deal with Greece's third bailout negotiations. As such an extra member has been added, namely the ESM.

Thus the Troika has been officially renamed the Quadriga.

What is a Quadriga?

It is a chariot of the gods drawn by four horses.

As Zerohedge points out, the finest example of a Quadriga sits astride the Brandenburg Gate in Berlin.

There's irony for you!

Lamont Assesses Varoufakis's Plan


Lamont was the Chancellor who took Britain out of the ERM in 1991 (or rather "managed" it crashing out of the ERM).

Monday, July 27, 2015

China Is Crashing

Troika Arrives - Confusion Reigns Supreme In Athens

As the Troika starts to arrive in Athens (even though its safe house has yet to be arranged), there is some confusion over what happens next.

The Greeks say no further prior actions will be taken prior to an ESM loan:

Yet the Troika, according to ekathimerini, expect the Greek government to draft another bill with prior actions so it can be passed through Parliament in the next two or three weeks.

As ever with this ongoing car crash confusion reigns supreme!

Sunday, July 26, 2015

Greek Capital Controls To Continue For Months

Reuters reports, not unsurprisingly, that Greek capital controls are going to remain in place for months until Greece is bailed out again.

The ongoing capital controls are strangling the economy and thus increasing the amount that Greece will need as a bailout. The banks alone will require Euro25BN at the very least to be recapitalised.

I wonder if anyone seriously believes that a third bailout, given the amount and restructuring required, will actually ever come to fruition?

Saturday, July 25, 2015

The Return of The Troika

The Troika are set to return to Athens.

However, their return is currently being delayed (and thus the start of bailout negotiations are also delayed) because of security fears. A safe house needs to be found for the group of technocrats, lest the local population try to do them some harm.

Such is the state of affairs within the eurozone!

Friday, July 24, 2015

Third Greek Bailout Causing Fractures

As the third bailout negotiations are set to begin in Athens, there are rumours of a SYRIZA split. Unsurprisingly, the Germans are none to happy about things either.

Additionally, as if things were not bad enough, people are not best pleased about providing Greece with a second bridging loan (as bailout negotiations are unlikely to be concluded - positively or negatively - before December).

For why?

A complete and utter lack of trust!

As per MNI, a top Commission source said the idea of more bridge financing for Greece was "not finding fertile ground among many Eurogroup members."

That's putting it mildly!

Thursday, July 23, 2015

Greece Needs Another Bridging Loan

Despite the delusional belief held by some that Greece is "fixed", the reality is that it is far from "fixed".

Negotiations about the next bailout (estimated to be around Euro85BN) are expected drag on until December. In the meantime Greece needs more money to fund its ongoing IMF payments, as last week's bridging loan of Euro7BN has already been swallowed up on IMF/ECB payments.

Thus the European Financial Stability Mechanism (EFSM) will probably be tapped again next month, and creditors' money will  be used to pay the self same creditors.

Circular funding at its best and most ludicrous!

Wednesday, July 22, 2015

Tsipras Wanted To Bring Back The Drachma

It seems that Tsipras really did want to Grexit and bring back the Drachma.

Greek media report that Tsipras asked Putin for Euro10BN to underwrite the currency. However, Putin said no.

However the fact that, had Tsipras still opted for Grexit, he would have got a Euro50BN handout from Schaeuble raises serious questions as to why he bottled it and opted for a deal that will destroy Greece.

Toshiba's False Profits

It seems that 30% of Toshiba's "profits" in the past 7 years were fabricated!

An independent panel appointed by Toshiba said that the firm had overstated its operating profit by a total of £780M.

Toshiba's chief executive and president Hisao Tanaka has resigned. Eight senior executives have now resigned after the independent report found that senior management were involved in a scheme to inflate profits over several years.

Tuesday, July 21, 2015

The Bank of Greece Website Crashes


It is now back up, but very slow to access.