Protests are ongoing in Athens, where leaders are trying to come to a deal on a second round of austerity measures, including privatizations and budget cuts.
The longer they take, however, the more public support swells against them, and greater the potential for Central European states to say no to a second bailout.
If no second bailout comes, Greece will likely be unable to pay its bills, and will default on its debt.
From Financial Mirror:
The rating agency said Wednesday that the financial profiles of National Bank of Greece, EFG Eurobank, Alpha Bank and Piraeus Bank “are exposed to significantly heightened risks as a result of deterioration in Greece's creditworthiness and Greek depositors' perceptions of a possible government debt restructuring.”
Paris, June 15, 2011 -- Moody's Investors Service has today placed the standalone financial strength ratings and long-term debt and deposit ratings of three French banking groups -- Credit Agricole SA (CASA), BNP Paribas SA (BNPP), and Societe Generale SA (SocGen) on review for possible downgrade.
The primary focus of all three reviews will be the banks' credit exposures to Greek government debt and the Greek private sector and the potential for inconsistency between the impact of a possible Greek default or restructuring and current rating levels. The review of SocGen will also assess the likelihood of future government support since our systemic support assumption is currently higher than the average for the French banking system.
Moody's also noted that exposures to Greece are to be included within the ongoing review for possible downgrade of Dexia Group's core operating banks.
- A new Vienna Initiative: Despite an event in the Greek banking system those same banks are still required to maintain capital exposure into Emerging Europe. EBRD and EU provide support and other incentives to make this happen. Such a move however would be difficult and impose additional burdens on an already highly stressed Greek banking sector.
- Business slowdown (least bad outcome): Greek banks severely constrain lending in domestic subsidiaries as parent company funding crowds out domestic business. This is anti-growth for Romania and Bulgaria, though arguably it has already started to occur.
- Greek bank consolidation (bad outcome): Greek banks are forced to consolidate, perhaps into some form of good bank/bad bank set-up. Consolidation causes asset sales in Bulgaria and Romania. With limited foreign interest likely, government or domestic money would be needed, meaning net currency outflow. If a sale was not possible capital withdrawal would then be likely.
Capital withdrawal (very bad outcome): Greek banks are forced to draw down capital from subsidiary banks to shore up their own balance sheets. The capital flight causes balance of payments stress (requiring reserve utilization and in Romania’s case potentially tapping the precautionary SBA).
- Subsidiary default threat (very bad outcome): Removal of parent company support causes domestic banks to default but EBRD and the Romanian/Bulgarian government step in and nationalize or cause consolidation within Romania to absorb the bank.
- Outright parent company default (worst outcome): Parent company support is removed, capital is withdrawn, there is a fire sale of Emerging Europe assets. (Even if Greek banks were nationalized or bailed out would the Greek government really want to support Romanian and Bulgarian subsidiaries?)
From a Fitch comment on May 24 .
"However, their individual ratings also consider Fitch's expectation that impaired loans in some (central and eastern European) markets have yet to peak and -- in the case of Erste and notably RBI -- the banks' only modest capitalization if the forthcoming repayment of government participation capital and preparations for Basel III are taken into account,"
In the event of a Greek default, that debt may become worthless, and the ECB may be forced to recapitalize through taxpayer funds, from the rest of the euro-zone....
Read more ....
Greece. Greek anti-austerity protesters battle police. Protesters surround Greek parliament. Greek protests mirror those in Spain. What the workers and students of Europe should do is grab a couple of global bankers and string them up from central city lamp posts. It would be a powerful and inexpensive advertisement against the theft of public property by the global shysters....
Greece is corrupt.
The Greek government hospital system is said to be the most corrupt institution in Greece. (Near-bankrukpt Greece a culture of corruption.)
What is the average salary of the people working for the railway system in Greece?
This includes cleaners and track workers.
Is it £20,000 or £60,000?
It is £60,000. (The Big Fat Greek Gravy Train.)
The wage bill of the Greek railway system is £500 million per year.
The annual income of the Greek railway system is only £80 million.
The wage bill of the Greek public sector has doubled in ten years.
The Greek school system employs more people than it needs - four times more teachers per pupil than Finland. (The Big Fat Greek Gravy Train.)
Crete by jpbell11
Greece has spent vast sums on armaments.
Guess which bankrupt EU state is the world’s fourth biggest arms importer
During the years 2005 to 2009, the defence bill in Greece grew by a third.
During the years 2005 to 2009, Greece doubled the amount it borrowed from western banks.
So French banks lent money to Greece and Greece bought French fighter planes.
Bribery of top Greek politicians, public officials and military leaders has been used to secure contracts.
Many of the Greek tycoons and industrialists pay no tax.
Greek shipping tycoons are exempt from tax.
There is a lot of Greek money in tax havens such as Liechtenstein, the Bahamas and Cyprus. (The Big Fat Greek Gravy Train.)
A. Is the USA powerless against the BRICS - the 'alliance' of Brazil, Russia, India, China, and South Africa?
Are the Rothschilds and Rockefellers powerless against the BRICS?
B. We assume that China can be put under pressure by the 'organization' of riots (Chinese riots enter third day).
And India 'kept under control' by people such as 'CIA agent' David Headley.
Perhaps India and China can be persuaded to go to war against each other, thus weakening both?
China is backing Pakistan which is a rival to India. (If India and Pakistan Come to Nuclear Blows, Blame US: Mishra)
Presumably some of the top people in the BRICS already work for the CIA and its friends. ("KASAB WAS INTERROGATED BY HEADLEY")
Note Russia's opposition to Gaddafi. (Russia urges Gaddafi's departure, offers aid to opposition)
C. On 15 June 2011, Russia's General Leonid Ivashov wrote an article entitled BRICS and the Mission of Reconfiguring the World
Ivashov points out:
1. Countries which defy the USA, and defy dollar dominance, tend to be attacked by the USA.
Think of Saddam Hussein's Iraq and Qaddafi's Libya.
2. However, "the financial empires built by the Rothschilds and Rockefellers are powerless against the BRICS."
The BRICS account for nearly half of the world’s population.
Three of them are nuclear-armed.
BRICS "do not appear vulnerable to color revolutions or to the strategy of provoking and exporting financial crises."
BRICS own vast natural resources.
3. In April 20011, a BRICS summit denounced the use of force against Libya.
4. BRICS should link up with Iran, Indonesia, Syria, Malaysia, Turkey and others....
There should be a BRICS common market.
And a BRICS shared security framework.
5. Two processes are going on.
On the one hand, attempts are being made to establish a 'world government', run by the 'main financial empires'.
To help achieve this, various crises, armed conflicts, and calamities are provoked.
On the other hand, an alternative world order is increasingly visible - BRICS, along with its potential partner the Shanghai Cooperation Organization....
What is happening to Greece is no fault of the Greeks and it is going to occur to all countries with central banks and usury.
The Wailing Wall SJ, whose real editorial board sits in Jerusalem... writes: "Greece's Government Prepares to Sell Up to $42.9 Billion of Public Property to Reduce Its Mountain of Debt."
Let me break this down into the steps which occurred.
1. The Rothschild owned central bank of Greece loans the Greek government fiat money at interest for many years in a row.
2. The Greek debt to the private central bank over time becomes so large the government can no longer even pay the interest on the debt it "owes" to the private Greek central bank.
3. The Rothschild owned IMF forces the Greek government to take steps to pay the debt and interest "owed" to the private central bank by accepting a "bailout" for billions of dollars AND dictates the land of Greece must be sold off to pay back the IMF "bailout".
4. Rothschild and associates create fiat out of thin air in another country's central bank, loan it to themselves and purchase the land in Greece.
Real wealth (land, mineral resources, etc) are in fact stolen by Rothschild and associates by first printing fiat and loaning it at interest for several decades, then putting the country into a type of debt default where the IMF forces it to sell the country's real wealth. All completely legal according to international law written by Rothschild controlled lawyers.
All completely immoral and should be treated by hanging all these people (my subjective opinion).
This treatment is coming to the whole world, USA included.
The final result will be Rothschild and his Zionist associates will own everything on the planet.
The above is fact not theory.....