Jul 11

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German FinMin Blasts Greek Proposal: Debt Restructuring Impossible, “Everyone Knows They Can’t Be Believed” (ZeroHedge, July 11, 2015):

In the face of Latvia’s outgoing President’s comments, that debt writedowns for Greece will only come after the bankruptcy of the state…

“this [Greek] debt is so big that everyone understands that it won’t be repaid. Loans to Greece have just bought time so that those in power don’t have to take decisions. This is like a game: who can hold out longer by not  showing that this money has been lost?  This burden has become bigger and there obviously is no possibility to repay. The debt writedown of Greek debt will come after bankruptcy of state.”

German finance minister Schaeuble has once again gone on the offensive this morning saying that “we know from the Treaties that debt relief is not possible,” yet noting that “the need for help for Greece is obvious.” However, his concluding, seemingly ad hominem, remarks are the most troubling for those expecting smooth passage of Greek proposals and a renewed rally to record stock market highs… “Greeks won’t pay their bills… everyone knows they can’t be believed.”

Bloomberg headlines from Schaeuble’s tirade:

  • *SCHAEUBLE SAYS HE EXPECTS “EXTRAORDINARILY DIFFICULT TALKS”
  • *SCHAEUBLE: DEALING WITH FINANCE GAPS BEYOND THOSE OF PAST
  • *SCHAEUBLE: KNOW FROM TREATIES THAT DEBT RELIEF IS NOT POSSIBLE
  • *SCHAEUBLE SAYS GREEKS MUST SHOW `OWNERSHIP’ ON PROPOSALS
  • *SCHÄUBLE: WON’T PAY BILLS `EVERYBODY KNOWS CAN’T BE BELIEVED’
  • *SCHAEUBLE: GREEK GOVT DESTROYED HOPE AT `UNIMAGINABLE LEVEL’

More Europe means More Germany: is that really want Tsipras wants… actually not even Tsipras knows what Tsipras wants.

Just what exactly is Greece so enamored by that keeps them in this union – especially when friends are likely waiting to help post-Grexit.

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