Quote:
Originally Posted by Gordon Booth
I must admit I despair of capitalism sometimes(hope Mancie and cmon don't see this).
Germany won't let the European Central Bank buy Government bonds from Greece, Spain etc to help them out of trouble.
So the ECB prints 489 billion non existent euros and lends them to the(privately owned) banks at 1%.
This is so the banks can buy Government bonds from Greece, Spain etc and charge them 5,6 or 7% interest.Thus the Germans aren't upset.
A good profit for the banks on money which they never had in the first place!
If the countries default, the 489 billion which never existed will disappear but the banks can't pay it back to the ECB(they never had it) so the 17 EU countries will have to make it up with another 489 billion which doesn't exist. That stops the banks going bust again .
Alternately the EU can write off the 489 billion because it never existed anyway, so not a problem.
In the meantime the (privately owned) banks make 24.5 billion euros a year profit for three years! Which will pay a lot of bonus's.
In the end every one is happy-the Germans, they got their way.
The Greeks, Spanish etc.-they were bailed out with money they didn't have to pay back.
The banks-heads they win, tails you lose.
The ECB-well, the money didn't really exist anyway.
Is that right or am I loosing my sanity?And why can't I run my finances that way?
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If ya did Gordon they'd probably throw you in jail
