"Rather Cut Off My Arm Than Pay Back What Greece Borrowed".... Varoufukis

[Tsing Tao]

Except the US banks are much more heavily invested in Puerto Rico. This will get interesting.

The right thing to do on Puerto Rico is to change the law on bankruptcy to allow them to declare it, and NOT bail out the island. Let the senior creditors take the losses. That's the whole God damned point of lending risk.

 

[Frederick Foresight]

The right thing to do on Puerto Rico is to change the law on bankruptcy to allow them to declare it, and NOT bail out the island. Let the senior creditors take the losses. That's the whole God damned point of lending risk.

I don't know what the best solution is, but I do know it involves foolish bankers taking their lumps. Between borrower and lender, the lender is supposed to be the more responsible adult because lending money is the lender's profession.

 

[fhl]

Not at all. Greece is best served outside the EMU. They all know it but they're so invested in maintaining the illusion the the EU cannot be exited (and aware that if Greece leaves and eventually succeeds what this will mean for Spain, Italy, France, Portugal, etc) that reality is no longer relevant. Merkel should simply cut off the Greeks and be done with it. That's what you do when you lend someone money and they don't pay. You stop lending them money.



Allow me to clarify that I have nothing in my comments about Lincoln or it's similarity or differences to the Greek scenario. I've not done the research on that topic to be qualified to voice an opinion either way. I can only speak to the situation in the EU.

I'm not for lending Greece any more money unless they demonstrate they can pay, either.
I was addressing the many articles i see in the news that denigrate Merkel for not doing what I mentioned. Writing off the debt and loaning them more money to keep them in the ez.

 

[Tsing Tao]

I'm not for lending Greece any more money unless they demonstrate they can pay, either.
I was addressing the many articles i see in the news that denigrate Merkel for not doing what I mentioned. Writing off the debt and loaning them more money to keep them in the ez.

I rarely pay attention to the regular press. In this case, the main cheerleading financial press (like CNBC) are pissed because markets are down. They blame Merkel (which is lunacy). But no one ever accused those guys of understanding anything in economics or the market.

 

[Scataphagos]

Let the senior creditors take the losses. That's the whole God damned point of lending risk.

LOL! Good one.

 

[Ricter]

We're developing a new guillotine for the 21st century. Programmable. Comes with an MRI type sensor to evaluate the density and diameter of the neck in the cradle. Blade descent speed is then automatically adjusted to still make a clean cut AND produce that satisfying "thunk" sound. This functionality creates less wear and tear on the whole unit.

Listening to customer feedback, we've designed the unit to operate with the above default settings, but also allow the user to take manual control and use the unit the traditional way.

 

[Tsing Tao]

We're developing a new guillotine for the 21st century. Programmable. Comes with an MRI type sensor to evaluate the density and diameter of the neck in the cradle. Blade descent speed is then automatically adjusted to still make a clean cut AND produce that satisfying "thunk" sound. This functionality creates less wear and tear on the whole unit.

Listening to customer feedback, we've designed the unit to operate with the above default settings, but also allow the user to take manual control and use the unit the traditional way.

 

[Ricter]

Forgot to mention, we're calling it the iGuillotine.

: )

 

[AAAintheBeltway]

The right thing to do on Puerto Rico is to change the law on bankruptcy to allow them to declare it, and NOT bail out the island. Let the senior creditors take the losses. That's the whole God damned point of lending risk.

How is it fair to creditors who lent money to PR on the understanding that it could not declare bankruptcy? Isn't that changing the rules in the fourth quarter?

 

[Ricter]

How is it fair to creditors who lent money to PR on the understanding that it could not declare bankruptcy? Isn't that changing the rules in the fourth quarter?

If PR can restructure, those creditors have a chance at some fraction of repayment. Otherwise, PR simply defaults and they get nothing.