Tuesday, May 4, 2010

Stupid Headline of the Week

This one is too easy:

Euro market meltdown resumes despite Greek deal

How about because of the Greek bailout? How about what did you expect? The Greeks have shown neither the willingness nor the ability to figure out how to deal with their debts and structural deficit. That 110 billion euro promised? Might as well flush it. And the reason the euro market is melting down? Clearly more bailouts are on the way; in for a dime, in for a euro.

The reporting in the linked headlines isn't near as bad as the editorial writing that came up with the headline. Some tidbits:

In Athens, striking public workers challenged Greece's 110 billion euro ($146.5 billion) bailout-for-austerity deal, starting a 48-hour national strike that shut down ministries, tax offices, schools, hospitals and public services.
While I can get behind the whole tax office shut down; you have to ask yourselves, are these people insane? Where do those public workers think their salaries come from? I guess they don't think. Further, just because there was a bailout, don't think default isn't in the cards anyway. Look who's been signed on to help the Greeks:

News that Greece has appointed debt restructuring specialists Lazard to provide "general financial advice" fueled speculation that some form of orderly rescheduling or payment moratorium may be likely, despite vehement official denials.

Finance Minister George Papaconstantinou told Reuters after news of the Lazard hire: "Any form of debt restructuring is out of the question."
The denials are certainly convincing to me.

And if you thought this was an amusing little comeuppance for uppity euro-trash socialists, guess who's also footing the bill. From W.C.'s column today, quoting John Mauldin of Investor's Insight:

Let me start this week's Outside the Box by venting a little anger. It now looks like almost 30% of the Greek financing will come from the IMF, rather than just a small portion. And since 40% of the IMF is funded by US taxpayers, and that debt will be JUNIOR to current bond holders (if the rumors are true) I can't tell you how outraged that makes me.
To quote W.C., welcome to bailout planet baby.

Here is the picture accompanying the article:

Exit question, why a sign in English and why the commie hammer and sickle? OK that's two questions, but somebody help me out.

No comments:

Post a Comment