This protracted game of “extend and pretend” serves nobody’s long-term interests: not those of the Greek government, the International Monetary Fund or, most of all, the people of Greece. The Editors, Bloomberg 21 June 2017
The late Hyman Minsky said that such moments arise naturally when a long period of stability and complacency eventually leads to the buildup of excess debt and overleveraging.
At some point the branch breaks, and gravity takes over. It can happen quickly, too. Minsky came to mind because in the past week I saw yet more signs that financial markets are overvalued and investors excessively optimistic. Yet I still haven’t seen many references to Minsky.
Under the compromise deal, the IMF is set to formally join the rescue programme, but delay providing any money to Athens until the eurozone provides more clarity on what debt relief it is prepared to offer. FT 15 June 2017
In 2010, when the Greek debt crisis started, Greece received €110bn in bailout money. And in 2012, the country received a second bailout of €130bn. In August 2015, the eurozone countries agreed to give Greece a third bailout, of up to €86bn The next tranche of that bailout, which Greece needs in order to honour repayments due in July, is being discussed at the eurozone finance ministers' meeting on Thursday. BBC 15 June 2017 Kommentar av Rolf Englund: Observera att man inte kan addera dessa summor, eftersom nästan hela de nya lånen används för att lösa in tidigare lån från EU och IMF. Ja, de första pengarna gick förstås till de tyska och franska banker som gärna lånat ut pengar till Grekland och nu hotades av konkurs. EU räddade inte Grekland. EU räddade bankerna. EU did not save Greece. EU saved the banks.
"Investors Should Be Petrified" Of The Coming Ice Age The big Ice Age call was that the tight positive correlation between equity yields and bond yields that market participants had enjoyed since 1982, driven by ever-lower inflation, would break down. zerohedge 7 June 2017
When politicians promise to make homes more affordable they are being utterly disingenuous because the requisite drop in house prices might lead to their being thrown out by the large pool of owners whose houses would be worth less. They prefer instead to bolster demand by offering financial support to first-time buyers via schemes such as the perverse Help to Buy initiative that until recently provided guarantees for mortgages that required only a 5 per cent deposit. John Plender, FT 14 May 2017
On the European mainland it has always been well understood that the whole purpose of European integration was political, and that economic integration was simply a means to a political end. Nigel Lawson, Telegraph 2 May 2016
For all the finance ministry’s ebullience over the MPS agreement, it will find it much harder to win approval from Brussels for a state bailout of Banca Popolare di Vicenza and Veneto Banca. FT 1 June 2017
Christine Lagarde said that eurozone creditors must provide considerably more detail on debt relief for Greece before the fund will take a decision to join the country’s bailout programme. “There cannot be a specific case for any particular country.” Read more here