Owed to a Grecian Earner?
1. From The New York Times on May 16th – “Greek Leader Considers Action Against US Banks”
“ATHENS, Greece – Greek Prime Minister George Papandreou is not ruling out action against U.S. investment banks for their role in creating the spiraling Greek debt crisis. Papandreou told CNN on Sunday that ‘I wouldn’t rule out’ going after the U.S. banks.
“The government, as well as many Greeks, have blamed international banks for fanning the flames of the debt crisis with comments about Greece’s likely default. The Greek leader also says a parliamentary investigation will soon examine the rapid swelling of Greece’s debt and the country’s banking practices.-
“BERLIN (AP) – The chief economist of a German bank is quoted as saying that he doubts Greece’s ability to repay its huge debts in an orderly fashion.
“German news website Handelsblatt on Sunday reported that the Dekabank’s chief economist shares the doubts voiced by Deutsche Bank AG’s Chief Executive Josef Ackerman on Thursday.
“Ulrich Kater was quoted as saying: ‘It will be very, very difficult for Greece to orderly repay its debt.’ He said the country’s new austerity measures and its lack of competitiveness were dooming Greece’s prospects for economic growth, making debt reduction difficult.
“Ackerman, CEO of Germany’s biggest lender, caused outrage and nervousness on already jittery markets by publicly doubting Greece’s ability to repay its debt and mentioning the possibility of a debt restructuring.”-
2. From the Business Times on May 14th – “Deutsche Bank CEO Doubts Greece Can Repay”
“FRANKFURT – Deutsche Bank Chief Executive Josef Ackerman cast doubt on Greece’s ability to repay its debt in a TV interview.
“If Greece were to ‘fall down’ this could spread to other countries and lead to a ‘sort of meltdown’, Mr. Ackerman said.
“Greece has been forced to implement tough austerity measures as a precondition for an international bailout, a move that has sparked widespread protests in the southern European country.”-
Those “protests” in Greece are because of widespread unemployment, and if no one is working and paying taxes, then Greece will never repay its debts. Other countries – including the U.S. – will “sort of meltdown” as a result, and it won’t be pretty.
[Did someone say something about shipyard jobs?]