Loan sharks in Aegean

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?

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Germany likes hippies, no haircuts for Greeks

Greece preps to hear its fate on a bridge loan from EU officials Friday so it can open banks on Monday.

The vote is not a given since the IMF has come out and said that Greek debt levels are unsustainable and that a substantial haircut is needed on the principal amount owed.

It’s Greece’s best last chance to get out from under the burden of a decades-long vassal existence within the euro zone. Unfortunately, it will probably not work out well for Athens, since the Germans are staunchly against a haircut, fearing the rest of southern Europe will come knocking should the haircut be allowed.

Despite this drama, this is the first weekend in a month or so where there is not a vote of measure being voted on in Greece or Brussels.

So let’s take it in and have a good weekend.