A Tale of Three Gates

[Acrylic-bob]

An interesting post on another blog that I follow has this quote from the US blog Zerohedge.

"From zerohedge today
Think filing for bankruptcy is the only way to get debt discharge? Think again, at least in Greece. While previously we have reported that Greek courts had written off “untenable” debts of unemployed Greeks owed to local banks, Kathimerini describes a landmark case which may have profound implications for the indebted country, in which a fully employed woman has had the bulk of her debt written off. From Kathimerini: “In what could turn out to be a significant ruling for Greeks suffering from the economic crisis, a court in Hania, Crete, has become the first in the country to order that the majority of the debt owed to banks by someone still in full employment be wiped out. Sunday’s Kathimerini understands that the Justice of the Peace Court in Hania based its decision on a 2010 law that allows judges to give protection to people struggling to meet their financial commitments. Until now, the legislation has only been used to give debt relief to unemployed people or those with no substantial income.” This means that virtually every indebted person in Greece, regardless of employment status will rush into court rooms, demanding equitable treatment and a similar debt write down. It also means that the Greek bank sector, already hopelessly insolvent, is about to see its assets, aka loans issued to consumers, about to be written off entirely. And since the ultimate backstopper of the entire Greek financial system is the ECB, the creeping impairments will have no choice but to impact, very soon, the mark-to-market used by both the ECB and the various national banks. Finally, how long before other courts in Europe express solidarity with their own citizens and proceeds with similar resolutions?"

Note: Mark-to-Market and Mark-to-Model are two ways that banks use for declaring the value of an asset, in this case the asset is a loan.

Tee Hee Hee! Bring it on.

[garinda]

Well the family Garinda have just booked a beachside villa in Sardinia, so that's the Italian economy safe for another year.

Just Greece to worry about now.

I don't really want to sell my collection of Demis Roussos kaftans.

Though I'd consider it, if it saved our European brothers in Greece from being declared bankrupt.

You never know, someone might go mad, and buy a few extra jars of olives, and thus save the kaftans.

It's a worry.

At least we're all in it together.

Vive fraternal Internationalism!