ECB Policy on Greece: yes, you do have to be mad to work here.

It doesn’t get much sillier than this.

Earlier on Eurenders, Mario the money-changer told Stavros at the Bank of Greece that he could have more and easier access to the wonga at Mario’s Loans. But Stavros already owes Mario €3.2Billion on a previous Bond.

So Stavros asks the eurozone for a bridging loan from the ECB to pay back the Bond issued to the ECB. Eurozone says no. So Stavros asks the ECB for a further 30 days in which to cough up. Eurozone says no.

So this week, the Bank of Greece which supposedly has more relaxed access to ECB loans will have to auction €6bn of short-term paper to local Greek banks. In doing this, the Bank of Greece will be selling toxic debt to these banks which already rely on emergency liquidity assistance from yes, that’s right……the Bank of Greece.

And in the next episode, Gulliver visits the Island of Drivatiffs, where two peoples – the Obligashuns and the Goblinashuns – fight regular wars about whether one should have one’s feet nearer to the ground, or one’s header nearer to the sky.

Neither can win the argument, because both have their heads and feet up their arses.


47 thoughts on “ECB Policy on Greece: yes, you do have to be mad to work here.

  1. “So this week, the Bank of Greece which supposedly has more relaxed access to ECB loans will have to auction €6bn of short-term paper to local Greek banks. In doing this, the Bank of Greece will be selling toxic debt to these banks which already rely on emergency liquidity assistance from yes, that’s right……the Bank of Greece.”

    My head spun when I read, then re-read, the above. You sort of got to hand it to the sprouts and the bankers that they’ve managed to keep up this charade of a juggling act this long, based on, well, bullsh*t and nothing else really.


  2. I guess that’s Greek Tragedy for the 21st century then. Who said Greeks have nothing more to give to Humanity ?


  3. I’ll take the blindfold off and stop her screaming…

    after that my charm will win her over – fail proof plan


  4. If you listen very carefully and turn the Olympics right down, even from here you can almost hear the clatter of the Bank of Greece’s printing presses being stepped up into overdrive…..Lots and lots of nice shiny new Euro notes to sort out this insane mess and send back to the ECB to keep Uncle Mario ‘appy!….And all with those nice German X suffix on them, of course !! ;))


  5. The reality is much more simple though yours is more fun. The Euro will be rescued, no legal, financial or democratic obstacles will be tolerated. The only way it will end is badly in catastrophic circumstances.

    Sorry to be such a misery bunny, carry on.


  6. Sorry Maxi, you wnt find her now. Odds are she’s in a “financial re-education centre”, her smart mouth and silly “opinions” do not make our magnificent leaders happy.

    On a serious note: Krugman is a f***ing c**t!!


  7. Maxi
    as a plan, it could work.

    However, I would caution you on the blindfold. She might start screaming as soon as you take it off, not stop.


  8. I’ve often thought that children at school should be taught about household budgeting, the work ethic and how to manage a bank account. One of the primary lessons would be that you can’t buy yourself out of debt. Using one credit card to pay off another credit card is both stupid, and evidence that you’ve lost control.
    Another lesson would be that there is smart borrowing and dumb borrowing. Borrowing to invest in production is smart; borrowing to impress the neighbours with a new fancy car is dumb.

    People argue that you can’t apply household economic principles to nations, that it is somehow more complicated. It isn’t. Politicians have deviated from these sound principles and look at the state we are all in.

    Printing money should be a desperate last resort to be entered into when only there is a strong likelihood that in the short term future productivity will increase to cover it. It is plain that is not going to happen. Hyperinflation right across Europe is just around the corner unless these maniacs are stopped.


  9. another indication of …division by zero. Over here, we are being told that we may pay our 2011 taxes in installments… into 2013. Many simply can’t afford the 2011 tax bill. We are not getting richer any time soon… QED


  10. you mean like a teenage girl at a justin beiber concert type screaming??

    Thats possible, I am very handsome after all


  11. Max

    I’ve often thought that children at school should be taught about household budgeting, the work ethic and how to manage a bank account.

    Shouldn’t that apply to those in the ECB and BoE too?


  12. Max and Gemma, I had the privilege of teaching just that subject to a class of 32 fifteen year olds in 1988, when I was barely older than them. As I had been brought up on the breadline it wasn’t a challenge, and as a parent since, ditto. Sadly, there are too many poor parents out there (as in, shouldn’t be parents) and no matter what goes on in school, the world we live in, day in, day out, will override any sensible stuff for far too many peeps.
    I’d like to see a few female married mothers in charge of a countries finance…one can dream!
    (Whilst teaching at said school I had my finest moment-at the same time as realising I was wasting my time, failing in educating such fodder- when I wrote a school report to be sent home about a lad who came to every one of my classes. He always promptly folded his arms on the old wooden benches and went to sleep, without fail, every lesson ; when I wrote that if he had tried any less hard, he might forget to breathe…well…let’s just say that the report got lost by a senior teacher on its way to the head…phew! )
    I did like the idea of work swapping, where you follow a different job for a week – to open our eyes as teachers – shouldn’t this be compulsory for all senior politicians? Preferably if they get to follow a less than desirable job such as septic tank emptying…..


  13. Jo

    “I’d like to see a few female married mothers in charge of a countries finance” when I took over the office of my ex’s business, profits jumped 30%

    This is (most of) the tale …

    As to senior politicians, isn’t their aim to not do any work? Cameron’s idea of a career was of sitting on the back benches with a stealthy glass of whisky under the seat. It must have been a shock to the system to be elected leader – let alone prime minister. In a few years’ time he will have retired and be earning fortunes with after dinner speaking which seems to be the aim of any sensible man. —- All of which means that there is such a thing as a free lunch (dinner).


  14. Outside the Olympic bubble,here on the South Downs,questions arise as to why our heroic winners accept medals with a gold content of 4 percent.Another form of QE, I presume.Anyway,some obscure US authority has launched a full blown attack on a sucessful money laundering BRITISH BANK,ignoring the fact that that is how Jamie Dimon turned JPM into the next US bank to go bust.Do not be lulled by this pleasant weather,and the summer silence of our political masters.Despite the best efforts of two obscure ,unelected European politicians(come in Jose and Herbert,and stop fighting about the beach ball),we are due a market adjustment.


  15. I was wanting to reply to Joanna but she doesn’t seem to have the REPLY bit next to her post.

    Anyway I was going to add that politicians aught to have spent a year or two in the armed forces as well as any other job, and preferably on the front line if there is one, in any of the services. This would happen once they had decided on a political career and would occur prior to running for any office.

    We would then end up with politicians who would be less likely to use military force and put their former colleagues as well as the nation, at risk, they would also have more than a passing understanding of what the military is about. This always used to be the case.


  16. @TVORII. centuries ago, kings used to send their sons in to the front line of battle, and they would sit right alongside them. An excellent idea which if brought back would make these idiots think twice about going to war.


  17. @joanna. Put the Women’s Institute in charge and we’d see some sensible changes in policy.
    The present fiasco is being driven by fear and testosterone.


  18. Krugman rolling his eyes to a serious question says it all for me. He couldn’t even be bothered to hide his contempt for this question.


  19. @ william

    I like your incisive perception of the market and your obvious and vast experience and knowledge.
    We could have dinner together on September 12th…….?
    Are you married good sir?

    Your ever loving admirer….
    Gemma babe x


  20. AYMGS? 3 times,2 mega houses,i yacht,barbacue for the step children on the 12th,as we await ‘events, dear boy ,events’.


  21. Pingback: John Ward – ECB Policy On Greece: Yes, You Do Have To Be Mad To Work Here – 7 August 2012 | Lucas 2012 Infos

  22. Voice/Max…can’t help but feel that we went wrong when National service was cast aside.
    Had a pen-friend in Stuttgart, just a few months younger than me, 1979ish, and he knew he had to do NS but could ‘opt’ out and do help in the community…which he then did.
    I now have nephews in Berlin, and think that a similar thing still exits (not quite the same for gals..shame) tho’ not fully conversant as sibling has gone deutsche and we can’t converse usefully anymore… wierd! (LONG story)
    Being used/trained/respected must be better than what a lot of young folk get in England these days? (OOoohhh, did I say a swear word, I meant GB/UK/politically correct whatever….)


  23. why is there not a single hole in any of these contemptible, evil bastards. i just dont get it. the collective damage they are doing is immense yet there is no reaction?


  24. Here is an interesting article by Yanis Varoufakis on this issue.

    I find it amazing how many people still believe that one can draw water from a dried-out well. In order to be able to do that, one first has to dump the water into it. The problem is that the general public only sees the dumping-in part of it and they think the water is being poured into Greece as a bottomless pit. Instead, the dumping-in is mostly for the drawing-out. This is ridiculous enough when tax payers’ money is dumped in and drawn out by private creditors. But when it is one and the same party which is doing the dumping and drawing, even a schoolboy would wonder what the sense is in all of this. In this case, the ECB’s left pocket pays off the ECB’s right pocket. And it may even be that the ECB makes a bit of a profit by moving money between its own pockets (if they purchased the securities falling due below par).

    The world of finance has been turned upside down. Everyone used to worry about a borrower refusing to pay back its loans. Now, the greatest threat which Greece could make is to refuse taking on a new loan. The headline would be: “Greece bankrupt — because it refused to borrow more money!”


  25. @MaxC

    With the Women’s Institute in charge, we may worry a tad about the defence of the realm, cabinet meetings may drag on just a little as they ponder the concept of that year’s hanging-baskets for Downing Street and the annual government calendar may need a measure of PhotoShop wrinkle-editing. But, by God, the damson jam on our morning toast will be amazing. The plan might just work.


  26. Joanna, on the question of National Service, why not commission a survey ?

    Sir Humphrey: “You know what happens: nice young lady comes up to you. Obviously you want to create a good impression, you don’t want to look a fool, do you? So she starts asking you some questions:
    Mr. Woolley, are you worried about the number of young people without jobs?”
    Bernard Woolley: “Yes”
    Sir Humphrey: “Are you worried about the rise in crime among teenagers?”
    Bernard Woolley: “Yes”
    Sir Humphrey: “Do you think there is a lack of discipline in our Comprehensive schools?”
    Bernard Woolley: “Yes”
    Sir Humphrey: “Do you think young people welcome some authority and leadership in their lives?”
    Bernard Woolley: “Yes”
    Sir Humphrey: “Do you think they respond to a challenge?”
    Bernard Woolley: “Yes”
    Sir Humphrey: “Would you be in favour of reintroducing National Service?”
    Bernard Woolley: “Oh…well, I suppose I might be.”
    Sir Humphrey: “Yes or no?”
    Bernard Woolley: “Yes”
    Sir Humphrey: “Of course you would, Bernard. After all you told you can’t say no to that. So they don’t mention the first five questions and they publish the last one.”
    Bernard Woolley: “Is that really what they do?”
    Sir Humphrey: “Well, not the reputable ones no, but there aren’t many of those. So alternatively the young lady can get the opposite result.”
    Bernard Woolley: “How?”
    Sir Humphrey: “Mr. Woolley, are you worried about the danger of war?”
    Bernard Woolley: “Yes”
    Sir Humphrey: “Are you worried about the growth of armaments?”
    Bernard Woolley: “Yes”
    Sir Humphrey: “Do you think there is a danger in giving young people guns and teaching them how to kill?”
    Bernard Woolley: “Yes”
    Sir Humphrey: “Do you think it is wrong to force people to take up arms against their will?”
    Bernard Woolley: “Yes”
    Sir Humphrey: “Would you oppose the reintroduction of National Service?”
    Bernard Woolley: “Yes”
    Sir Humphrey: “There you are, you see Bernard. The perfect balanced sample.”


  27. Klaus,

    the thing that really gives them nightmares is

    ‘Greece pays off debts and refuses to borrow any more’

    Even in default there is work for administrators, if everybody paid off their debts then there is no need for ESM, EFSF, IMF and any number of acronyms.

    To a bank, a loan to a customer is an asset (no matter how bad), no loans = no assets, whereas a deposit in a bank is a liability and as everyone knows (even the four brothers) when your liabilities exceed your assets, it is time to go home.

    The banks gamed the system and then bought politicians (of all parties) with the profits to entrench the gameable system (becoming systemic).

    The love of money is the root of all evil and the financial system, with its capability of creating money at will, is the source.
    Simply put, the financial system as it stands must be completely destroyed.

    Zero day.


  28. @Mudplugger. Your comment further down the page about the Women’s Institute taking up time discussing hanging baskets. I’ve got to disagree. Give them some real power and those ladies would kick arse. No benefits scroungers sponging off you and me, no young fathers walking away from their respnsibilities, no multi-layers of senior managers with expense account lunches and yearly upgrades of BMWs. Young people given the choice of military service or social service (like in Germany). I’m getting quite carried away with the idea :-)


  29. @captain custard. In 1327 King Edward II was murdered by having a red hot poker thrust up his fundament. The angry mob could make holes in these people by that method, if that appeals to you? Sounds like a plan.


  30. Just finished paying off mine, leaving me 39€ for food until 1 Sept. And I am luckier than so many! Still have a place to live, utilities and money due 23 days!!!!!! I even have a few packets of lentils. Unfortunately my hob (matia) just died…….
    Fellow greeks please note: even though they declared tax connection to the electricity bill illegal back in May, my electricity was going to be cut now ,because the money I paid to DEH (elec.) through the bank machine was seized by the taxes….


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