Eurozone Leaders Reach Debt Deal

Eurozone Leaders Reach Debt Deal

www.bbc.co.uk

Eurozone leaders have reached a "three-pronged" agreement which they say is vital to resolving the region's massive debt crisis.

After marathon talks in Brussels, the leaders said private banks holding Greek debt had accepted a loss of 50%.

Banks must also raise more capital to protect them against losses resulting from any future government defaults.

(visit the link for the full news article)

I don't even know what to begin making of this..I can't believe the banks agreed to a 50% write-off but there you have it, maybe they were pressured in to it, who knows for sure?

I'd also be very interested as to what this 'mechanism' is to raise the eurozone's main bailout fund to $1tn

Because banks have agreed to shoulder losses on Greek bonds, the country's burden has been reduced, cutting its debt down to 120% of its gross domestic product by 2020.

So Greece is in involuntary administration, let's see how it pans out and what happens with Italy and other struggling European nations.

www.bbc.co.uk
(visit the link for the full news article)

reply to post by Pirateofpsychonautics


I have a hard time feeling any remorse for any bank or corporation at this point. Oh well! Those hard working paper pushers can cry me a river, and get a job.

Right off the bat you are failing to see the propaganda, and the lie in the open.

The Banks didn't accept a 50% loss, if you know anything about fractional reserve banking, barely 1% of the entire bubble is fake, funny money. Telling the people the banks accepted a 50% loss is called Newspeak.

In fractional reserve banking, backed up by a parent cartel branch like the Fed, the only person accepting losses is the citizen, because the banks never earned, had, or could even prove 100% of it existed.

It's called derivatives, it's excess, it's fake and accepting a 50% loss on behalf of the people is still going to cause collapse. If we had BOA accept a 50% loss on it's bad derivatives that the taxpayer was just criminally forced into being liable for, we would be on the hook for $37.5 trillion. News flash, that is one bank and it's already more than the US GDP so we would never be able to pay it back.

That is, one bank.

Honestly, all this debt is owed between the cartel so everything should be written off.

Originally posted by Evolutionsend
reply to post by Pirateofpsychonautics

 

I have a hard time feeling any remorse for any bank or corporation at this point. Oh well! Those hard working paper pushers can cry me a river, and get a job.

It will be like always. The banks won't pay anything, because they will be bailed out through the backdoor. If they tell you the banks will pay their share it is a smoke screen. Nothing more nothing less.

Whatever they are doing, it will be against the people of Europe, actually against the people of the world, and they are spreading hate between them, because they know, that if the people unite, it will be their downfall. This is not about Muslims, Christians or Jews or Greece against Germany or France. It is about us against them and the earlier we realize that the easier the transition will be.

We can only hope that the Eurozone fails, because it would put a stop to the wet NWO dreams of bankers and politicians.

reply to post by ALF88


When they say "raise capital" they really mean "rob the working folks".

I've seen some comments on other news sites that seem to suggest a large chunk of this write down is being absorbed by pension funds - can anyone confirm that?

Originally posted by Evolutionsend
reply to post by ALF88

 

When they say "raise capital" they really mean "rob the working folks".

That pretty much sums it up. Whatever they do, it ends up in robbing us.

reply to post by Evolutionsend

When they say "raise capital" they really mean "rob the working folks".

You know, I've seen this claim made a lot.

However, I'm afraid I don't understand how banks "rob" you of your money. I would appreciate enlightenment on this issue.

Originally posted by Aim64C
reply to post by Evolutionsend

 

When they say "raise capital" they really mean "rob the working folks".

You know, I've seen this claim made a lot.

However, I'm afraid I don't understand how banks "rob" you of your money. I would appreciate enlightenment on this issue.

It's my understanding that this is done in the form of lying about returns on investments. As well as allowing people and businesses take out loans under conditions the bank knows are virtually impossible to pay back. There are also arguments that all their little 'service charges' are robbing people.

Bank of America was also recently in a class action suit over the way they processed charges to checking accounts. They processed the withdraws with the highest amount first instead of by the date of transaction.

Details on Filing Claims for BofA Overdraft Settlement Arrive

stock market now vertical..and there are NO MORE bailouts after this


retest of 666 within 2 years

Originally posted by Aim64C
reply to post by Evolutionsend

 

When they say "raise capital" they really mean "rob the working folks".

You know, I've seen this claim made a lot.

However, I'm afraid I don't understand how banks "rob" you of your money. I would appreciate enlightenment on this issue.

Greece issued bonds which were mostly bought by greek retirement funds as they are required to invest most of their money and only invest in 'safe' investments. Greek sovereign bonds were considered safe prior to the current greek economic troubles. When the troubles began the funds held them, as did many private investors, believing that it would not get worse. As it got worse, the funds were forced to start selling to stay within their legal limits, the private investors followed, and the price fell steeply as the bonds became seen as extremely risky. This means that the bonds were sold recently at prices as low as 20 percent of par value. Those bonds will now be repaid at 50 percent to the most recent owners who in most cases are big investment banks who have been lobbying(taxdeductable) the european politicians to guarantee the the greek debt.

Effectively, this means a gigantic transfer of wealth from retirement funds to investment banks. Banks which valued their bonds bookvalue at par, even though they they paid only 20 percent of par, and then write off their book loss of 50 percent. All legal and transparent.

reply to post by Aim64C


Most basic explanation is this. Banks charge customers high interest rates on loans so that they can stay in business. Nothing wrong with conducting business, even if they're not giving you a good deal. They then fail to actually make any money in their bigger investments which do not involve us. The government comes along and bails them out when they need it. They make money off of us from legitimate business, which isn't really doing much to help us btw (read: they get a nice cut), and then we pay them a second time by our taxes because our government has to pull their rear out from under the train when they screw up. It's kind of like food stamps for banks, except the government is supposed to be for the people by the people, not for the banks by the banks.

There are many other specific examples of various ways that banks screw us over, but that one is the most basic and most common. It's been happening all over the world for the last 10 years. Banks do nothing for humanity except make more money. If everyone stopped getting loans and actually saved up, banks would be pointless, but because we're a society that has to have it right now, they exist.

Originally posted by ALF88

Originally posted by Evolutionsend
reply to post by Pirateofpsychonautics

 

I have a hard time feeling any remorse for any bank or corporation at this point. Oh well! Those hard working paper pushers can cry me a river, and get a job.

It will be like always. The banks won't pay anything, because they will be bailed out through the backdoor. If they tell you the banks will pay their share it is a smoke screen. Nothing more nothing less.

Whatever they are doing, it will be against the people of Europe, actually against the people of the world, and they are spreading hate between them, because they know, that if the people unite, it will be their downfall. This is not about Muslims, Christians or Jews or Greece against Germany or France. It is about us against them and the earlier we realize that the easier the transition will be.

We can only hope that the Eurozone fails, because it would put a stop to the wet NWO dreams of bankers and politicians.

edit on 27-10-2011 by ALF88 because: (no reason given)

The banks will not get away with it this time I'm pretty sure. The extremistic ideologies are spreading like wildfire through Europe.
It's just a matter of time before a new Adolf Hitler will raise up.

How nice this looks on paper...

This write-off of 50% was the biggest mistake that EU leaders and bankers accepted.On short term, Greece is saved (well, not saved, just having a longer coma).

A small bank-run in Greece started before this agreement was reached.
Now, imagine when (and not IF) Italy and / or Spain will need a bailout...People will rightly think that the banks would accept a write-off in Italy or Spain also...

And man, i don't even wanna think how much negative impact a bank-run in Italy or Spain will have.

Its like saying to people : ''hey guys, your country is in deep #, but no worries, we will take your money from banks to save you ".

Eurozone deal: Banks made an offer they couldn't refuse

www.bbc.co.uk...

Let's take a look at comments in this link that says this is far from over:

"The building blocks are still missing. Even when they are put in place, many will regard them as inadequate."

"So it wasn't voluntary: the banks were made an offer they couldn't refuse. Some bank shareholders might yet want to challenge this in the courts."

"The recapitalisation is meant to fill the hole on banks' balance sheets left by the 50% write down of Greek debt. The Greeks will need 30bn euros (taking their latest bail out from just over 100bn euros agreed in July to 130bn euros now), Spanish banks 26bn euros , Italian 15bn euros, France 9bn euros , Germany 5bn euros and Portugal 5bn euros or more.

The deal doesn't say where this money will come from but implies banks should try first to raise the money themselves, then seek help from their governments with Europe as a last resort."

Just another Ponzi scheme.....

let me tell you whats going to happen......

the final disaster is going to be MEGA huge for Europeans!

Originally posted by Pirateofpsychonautics
I don't even know what to begin making of this..I can't believe the banks agreed to a 50% write-off but there you have it, maybe they were pressured in to it, who knows for sure?

This is a recognition that a country cannot go bankrupt, because the world does not work in that way. The debts of Greece are held by the banks. Thus it is the banks that will be hit in the attempt to resolve the crisis.

The problem has never been sovereign debt, but the institutions who hold that debt. If Greece cannot pay it’s debts, then the banks have to write it off. That is what is going on. The focus is on preventing the banks from going bankrupt.

Simple really.

Regards

reply to post by paraphi


However our national treasury is being kept by a bank?

reply to post by zarlaan

It's my understanding that this is done in the fo**]rm of lying about returns on investments.

Please, elaborate. How were they lying about it?

As well as allowing people and businesses take out loans under conditions the bank knows are virtually impossible to pay back.

I'm afraid I don't understand.... how is the bank stealing money from people who borrowed money from the bank, and are now claiming they cannot pay it back?

There are also arguments that all their little 'service charges' are robbing people.

Well, they are a service, are they not?

Bank of America was also recently in a class action suit over the way they processed charges to checking accounts. They processed the withdraws with the highest amount first instead of by the date of transaction.

That, certainly, is noteworthy. Although that policy could be valid, given their service contract with each customer.

reply to post by aaa2500

Effectively, this means a gigantic transfer of wealth from retirement funds to investment banks. Banks which valued their bonds bookvalue at par, even though they they paid only 20 percent of par, and then write off their book loss of 50 percent. All legal and transparent.

I am not quite understanding how -anyone- comes out ahead in that scenario. It's generally unwise to invest in government bonds issued by governments running a deficit. You're either going to be defaulted on or paid back your initial investment in a world of hyper-inflation - either way, you lose.

It would seem the banks are doing exactly what they are paid to do - what protects their investors (which would be anyone with a savings account, basically).

reply to post by Evolutionsend

They then fail to actually make any money in their bigger investments which do not involve us.

In those bigger investments? What bigger investments?

The government comes along and bails them out when they need it.

Correct me if I'm wrong... but isn't the government bound to its promise to pay back the bonds it issues - regardless of who/what purchases them?

They make money off of us from legitimate business, which isn't really doing much to help us btw (read: they get a nice cut),

Isn't a loan a tool/service to be used wisely? If I take out a mortgage, it's because I don't have enough money to purchase a house off-hand. The bank does have the money, however, and agrees to loan it to me and I agree to pay it back with a certain interest charged as a fee for the service.

In return - your savings account draws interest, because the bank is -technically- borrowing your money in the savings account to loan the money. As fewer people invest in savings, interest rates must go up accordingly - both to raise interest rates on savings accounts to encourage savings, as well as to help cover the losses from the inevitable percentage of defaults that will occur.

and then we pay them a second time by our taxes because our government has to pull their rear out from under the train when they screw up.

Not exactly. Anyone who invests in a government-issued bond (or a GSE -issued bond) is, effectively, paying for spending not covered by tax revenues and the government promises to pay it back within a certain time frame. In essence - anyone investing in these bonds is enabling the government to spend money that it, otherwise, wouldn't have. These often go toward services (particularly in social security and medicare/medicaid) utilized by the "lesser privileged."

This works to raise necessary funds in a short order - but fails when the government runs a consistent deficit.

If everyone stopped getting loans and actually saved up, banks would be pointless, but because we're a society that has to have it right now, they exist.

Banks would still exist. The difference is that banks not cartelized by government agencies and bonds would have to be far more strict as they would be inherently liable to their customers and for their stated account values (something the FDIC has wrecked in America).