ECB Profits from Greek Debt Crisis

[Braindead Colonel]

At a summit in Brussels this week, ECB President Mario Draghi rejected the idea of transferring back profits from bond holdings to the Greek government,

http://www.businessweek.com/news/201...l-reached.html

The ECB bought Greek bonds at substantial discounts as it sought to underpin the eurozone banking system and could make a handsome profit if Greece does not default and the bonds are held to maturity.
Private lenders have voiced irritation at ECB insistence that the bonds it holds be paid in full while banks are being coerced into accepting a loss of at least 50 per cent on theirs.

http://articles.economictimes.indiat...harles-dallara




Now ain't that pretty, the European Central Bank is trying to make a nice profit of 40 Billion Euros out of Greece's debt woes.
I thought the ECB was supposed to be part of the solution?

[Astaroth]

Did you read your own articles?

“The ECB could promise to sell their holdings of Greek sovereign bonds upon maturity to the Bank of Greece at their original purchase prices,” said Holger Schmieding, chief economist at Berenberg Bank in London.
A “middle way” might involve the EFSF or Greece, via an EFSF loan, buying the bonds off the ECB at their original purchase price, said Mohit Kumar, head of euro-area rates strategy at Deutsche Bank in London.

But no, it must be an evil conspiracy to take Greece's money.

Because, as always, everyone else but Greece is to blame. Macedonia, Turkey, the EU, Germany, the Nazis, the ECB.

[Braindead Colonel]

Did you read your own articles?

Yes I did, did you?
If so, you didn't understand them.

The quote you posted was what an economist thinks the ECB could do.
But as stated in the very same articles, the ECB is refusing to do so.

But no, it must be an evil conspiracy to take Greece's money.
Because, as always, everyone else but Greece is to blame. Macedonia, Turkey, the EU, Germany, the Nazis, the ECB.

Next time read the damn article before rushing to troll. It just makes you look silly.

[Astaroth]

Yes I did, did you?
If so, you didn't understand them.

The quote you posted was what an economist thinks the ECB could do.
But as stated in very same articles, the ECB is refusing to do so.

The ECB has refused to do the same private banks did (because, duh, they aren't a private bank):

The ECB is “not party” to ongoing discussions between the Greek government and the private sector, Draghi said on Jan. 19, without elaborating further.

And why? Because ...

“The ECB remains against an involvement simply because monetary and fiscal policy would cross paths,” said Silvio Peruzzo, euro-area economist at Royal Bank of Scotland Group Plc in London. “Participating would severely undermine the role of the ECB in crisis management.”

---

Next time read the damn article before rushing to troll. It just makes you look silly.

Why do you blame other countries for Greece's economic problems, huge debt and failed government?

[Braindead Colonel]

Why do you blame other countries for Greece's economic problems, huge debt and failed government?

Please quote where I blame other countries for Greece's debt.

My point here is that the ECB is trying to get away with making a profit out of Greece's debt while:

Private investors are forced to take losses.
The Greek state is forced to make major cuts to spending (medication, education, pensions)
and the stability of the EU and the financial sector at large is at risk.

It is a short-sighted approach by the ECB, which will sooner or later cause problems to every EU member, not only Greece.

[selder]

Why do you blame other countries for Greece's economic problems, huge debt and failed government?

He isn't blaming other countries unless I am missing something, he posted an interesting article that shows that some bankers are using a financial crisis to make money.

[|Sith| Max]

Why do you blame other countries for Greece's economic problems, huge debt and failed government?

Wasn't him, it was the Greek Government. The reason is because they are dicks.

[Justice and Mercy]

They're taking the money promised to them by the Greek government when the bonds were purchased.

It's too bad the same doesn't apply to the private banks, who have been fleeced by the various European governments, especially the incredibly incompetent Greek one.

[Rolling Thunder]

It's too bad the same doesn't apply to the private banks, who have been fleeced by the various European governments, especially the incredibly incompetent Greek one.

Which is entirely their own fault. Anyone lending to the Greek government at the same rate as the German government deserves a solid slap to the head.

[Justice and Mercy]

Which is entirely their own fault.

No, it isn't. They've been coerced into not taking their profits.

If Greece had been allowed to default (as it should have), I agree, it would have been entirely their fault.

[Rolling Thunder]

No, it isn't. They've been coerced into not taking their profits.

If Greece had been allowed to default (as it should have), I agree, it would have been entirely their fault.

Either way they wouldn't get their profits, so I hardly see what the difference is.

[bushbush]

No, it isn't. They've been coerced into not taking their profits.

If Greece had been allowed to default (as it should have), I agree, it would have been entirely their fault.

Nobody forced them to buy the bonds in the first place. Now they are taking a haircut because they either face a haircut or lose every single penny in the bonds. And they are voluntarily negotiating in taking a haircut. So i don't see where they were "coerced".

[karo]

Nobody forced them to buy the bonds in the first place. Now they are taking a haircut because they either face a haircut or lose every single penny in the bonds. And they are voluntarily negotiating in taking a haircut. So i don't see where they were "coerced".

But you are talking about the evil bankers and their conspiracy to rule the world!

[Plan C]

Which is entirely their own fault. Anyone lending to the Greek government at the same rate as the German government deserves a solid slap to the head.

Lol, what a summary of the fundamental flaw of the Euro.

EDIT: also, how long would global economy hold out if it weren't for investors still buying Greek and Italian bonds. They deserve a profit simply for keeping Europe, and the world, afloat ;-)

[Denny Crane!]

Lol, what a summary of the fundamental flaw of the Euro.

Or according to Thorn horrendous propaganda from the bilderburg group!

[Thorn777]

Lol, what a summary of the fundamental flaw of the Euro.

EDIT: also, how long would global economy hold out if it weren't for investors still buying Greek and Italian bonds. They deserve a profit simply for keeping Europe, and the world, afloat ;-)

Well in essence most triple A products out there pre 2008 where not worth the rating. Many of those that left still are not.

So I wouldnt even blame the cheap lending situation as being a big factor per se. The contrary since Greece for instance could have also used this cheaper lending to recapitalize old debts or invest heavily in infra-structure etc. It gave them matches but they decided to burn the house instead of lighting the chimney fire while we all watched them do it knowing we all are on that same path essentially.

I much more would blame the global loose mindset when it comes to extending credit and how that credit serves its purpose in circulation.

Or according to Thorn horrendous propaganda from the bilderburg group!

Yes, thats original Denny. Way to go.

[magpie]

Ah Colonel, Its not just the Greek bonds that will turn a profit if the ECB can keep the ponzi sceme going.
You can add the Irish bonds, Portugals and Spains.
They have mostly been bought up at a nice discount but the ECB are insisting the respective countries redeem them in full.

[Thorn777]

Keiboärd broken srrj lol

Otherwise it would be ä bäckdoor PUBLIC bäilout once ägäin.

The PUBLIC is in it to give life support, the priväte ones häd ä profit-motive thät didnt kuite work out ät thät point in time. If we do äwäj with äll thät then it becomes ä true tränsfer-union änd ä whole new bällgäme.

Stupid threäd once ägäin.

[Thorn777]

lol like jou dont know whi, where to strt...enjoj GS monej while it lästs

älso pensionfunds äre not the problem, lots of risk restrictions to thät. its the untäpped 1 percent moniez tht serve to pläj pong

nd then there is bnkers nd bnksters. bnksters dont invest, thej pläj professionäl pong

[bushbush]

lol like jou dont know whi, where to strt...enjoj GS monej while it lästs

älso pensionfunds äre not the problem, lots of risk restrictions to thät. its the untäpped 1 percent moniez tht serve to pläj pong

nd then there is bnkers nd bnksters. bnksters dont invest, thej pläj professionäl pong

majority of investors in the NY stock exchange are pension funds of one sort or another. They invest based on the advice of bankers and they invest in financial products set up by bankers. In essence, banks serve investors who in turn serve the general public by helping them to save and increase the value of their savings.

I am not saying there are nothing wrong with the current financial system. The big banks are too big to fail and they recklessly bet on the markets while letting the taxpayers bail them out when they fail. But at the end, they are just helping to satisfy the demands of the public to seek higher returns for their investments. They are just tools for all of our needs (or greed if you want to call it).

And I will say it again, Goldman Sachs is one of the best places to work in. You can make your first million before 30 if you do well. You work with smart and bright people and you work on cutting edge issues. It is a very exciting company to work for. That's why so many bright people have worked there. It is not a conspiracy that many government officials worked at Goldman Sachs in the past. It speaks highly of what a quality organization Goldman Sachs is, producing so many leaders in different sectors.