So here’s what’s it like to pay off a loan shark.
A week later you are in the same hole you were last week.
Turn your attention to Greece.
The EU granted Greece €7.16B payment in which 95 % or €6.8B went to the sharks Greece owed — the Trioka — and the 5% was kept by the Tsipras government.
What will come of next week’s vig?
To put it in context the Greeks have maxed out all their credit cards and are now making half the minimum payment every third month. It’s a recipe for default, but the creditors can handle a default so they extend the terms with no realistic expectation of getting fully paid, but to grab all the late fees they can get.
Also Monday some Greek banks opened to take deposits — as if anyone in their right mind would put money into the system. You can only take out the same €60 per day though.
There were discussions about be able to take €120 if you wait two days, but that’s still in discussions.
So how is the Greek economy suppose to grow with these capital controls and the treat of a bail in? What business would take a chance in that environment?