'ECB refuses to bail out Greece'

Thucydides

Perhaps it's just tough talk or perhaps he's genuinely sending a message to Greece and the markets, but the ECB chief economist Juergen Stark, in an interview with Germany's Welt Am Sontag, said today that the EU will not hesitate to raise interest rates - even if it means higher debt repayments for countries such as Greece.

On principle this doesn't come as surprising given its primary goal of price stability, but I'd say its significant that the ECB is choosing such a well known and read newspaper to reiterate the obvious.

Personally, I say that they should let Greece go bust - I'm aware of the dangers for Ireland. At this stage, however, its just allowing the nevitable to happen.

I don't see why German Taxpayers should continue to bailout countries in the medium term - Ireland included.

http://www.welt.de/finanzen/article5954077/Zentralbank-verweigert-Griechenland-die-Rettung.html

Économiste Monétaire

Thucydides wrote: »

Perhaps it's just tough talk or perhaps he's genuinely sending a message to Greece and the markets, but the ECB chief economist Juergen Stark, in an interview with Germany's Welt Am Sontag, said today that the EU will not hesitate to raise interest rates - even if it means higher debt repayments for countries such as Greece.

On principle this doesn't come as surprising given its primary goal of price stability, but I'd say its significant that the ECB is choosing such a well known and read newspaper to reiterate the obvious.

Personally, I say that they should let Greece go bust - I'm aware of the dangers for Ireland. At this stage, however, its just allowing the nevitable to happen.

I don't see why German Taxpayers should continue to bailout countries in the medium term - Ireland included.

http://www.welt.de/finanzen/article5954077/Zentralbank-verweigert-Griechenland-die-Rettung.html

Which countries are the German taxpayer bailing out as of now?

Thucydides

My laptop battery is about to go so forgive m promptness.


I recall reading the facts and figures in David Mcwilliams latest book.

In any case, however, it's a strong implicit assumption that Germany or rather 'Europe' (i.e. the German taxpayer) would step if the inevitable did happen.

Time Magazine

Économiste Monétaire wrote: »

Which countries are the German taxpayer bailing out as of now?

Not "bailing out", but it's reasonable to suggest that the ECB's "gentlemanly" behaviour towards the banks may be because of its concern about Ireland's fiscal ineptitude.

Économiste Monétaire

Thucydides wrote: »

My laptop battery is about to go so forgive m promptness.


I recall reading the facts and figures in David Mcwilliams latest book.

In any case, however, it's a strong implicit assumption that Germany or rather 'Europe' (i.e. the German taxpayer) would step if the inevitable did happen.

'Facts' and David McWilliams in the same sentence; that's new to me. You seem to be confusing fiscal and monetary authorities. If you could post up the list of which countries German taxpayers have extended credit to, that would help in any discussion of their continued support.

Time Magazine wrote: »

Not "bailing out", but it's reasonable to suggest that the ECB's "gentlemanly" behaviour towards the banks may be because of its concern about Ireland's fiscal ineptitude.

ECB = German taxpayers? Tut, tut. Sovereign-backed debt being accept in repos?!? Shocking.

Time Magazine

Économiste Monétaire wrote: »

ECB = German taxpayers?

Are you suggesting Dr Weber does not pay taxes? :pac:

Économiste Monétaire

Time Magazine wrote: »

Are you suggesting Dr Weber does not pay taxes? :pac:

Touché.

Time Magazine

Okay, hypocritical mod says let's stay on-topic please.

Hasschu

Essentially the ECB's position is that we are not your last resort cash box. German public opinion is that Greece has a thriving under ground economy and it is time the Greek gov't got off its lazy, incompetent derriere and rectified the tax evasion proclivities of its citizens and corporations. The fact that Greece misstated its financial position on entry to the Euro Zone and has continued to fiddle the books since is unforgivable in German eyes. To cap it off they make no attempt to accept responsibility or rectify the situation. The Greeks should be thrown to the Turks and left to wallow in poverty for a couple of hundred years is a sentiment expressed quite often in polite German circles. Ireland and to a lesser extent Eastern Europe is seen as accepting responsibility and are worthy of support. The European Monetary fund would not be a pushover but it would provide a European solution for European problems. Essentially Germany and France would be the core backers who would then twist arms to enlarge the pool.

SLUSK

Hasschu wrote: »

Essentially the ECB's position is that we are not your last resort cash box. German public opinion is that Greece has a thriving under ground economy and it is time the Greek gov't got off its lazy, incompetent derriere and rectified the tax evasion proclivities of its citizens and corporations. The fact that Greece misstated its financial position on entry to the Euro Zone and has continued to fiddle the books since is unforgivable in German eyes. To cap it off they make no attempt to accept responsibility or rectify the situation. The Greeks should be thrown to the Turks and left to wallow in poverty for a couple of hundred years is a sentiment expressed quite often in polite German circles. Ireland and to a lesser extent Eastern Europe is seen as accepting responsibility and are worthy of support. The European Monetary fund would not be a pushover but it would provide a European solution for European problems. Essentially Germany and France would be the core backers who would then twist arms to enlarge the pool.

All PIIGS countries should be thrown out because of poorly managed economies.

rightwingdub

SLUSK wrote: »

All PIIGS countries should be thrown out because of poorly managed economies.

Will any Eurozone member be kicked out of the Eurozone and say the unthinkable happened and Ireland was expelled from the Eurozone how long would Ireland be given in order to revert back to the punt as regards everyday business transactions?

nesf

The question's been answered: The EU will bailout Greece or any other EU country if necessary: http://www.ft.com/cms/s/0/866e1246-0c43-11df-8b81-00144feabdc0.html