New greek finance minister.
Post Reply
 
Thread Rating:
  • 0 Votes - 0 Average
  • 1
  • 2
  • 3
  • 4
  • 5
01-02-2015, 06:15 AM
New greek finance minister.
The new greek finance minister did an interview with the bbc the other day. He said something really interesting that i would like to hear peoples opinions on.

http://www.bbc.co.uk/news/world-europe-31072321

The part that i mean in particular is where he says "The disease that we are facing in greece at the moment is that a problem of insolvency, for five years has been dealt with a problem of liquidity".

He hasnt elaborated on what he means by this, who the insolvent parties are and what his alternatives are going to be to deal with the "disease", so it would be cool to hear what other people take by his words.

I feel so much, and yet I feel nothing.
I am a rock, I am the sky, the birds and the trees and everything beyond.
I am the wind, in the fields in which I roar. I am the water, in which I drown.
Find all posts by this user
Like Post Quote this message in a reply
01-02-2015, 06:56 AM
RE: New greek finance minister.
I've been following the news these days and all his conversations and interviews.

It seems to me that what he meant was that the problem right now is not a matter of liquidity (probably implying that the lack of liquidity is only a symptom, not the disease itself) but rather a matter of insolvency, an inability to actually pay up.

He made that comment in response to the reporter's mention of deposit withdrawals increasing and bank shares going down.

I suppose he meant that the previous government tried to deal with the problem of liquidity first, ignoring the fact that the debt was not viable. What they keep stressing is that no matter what we do here in Greece, we will keep going down without being able to pay up, so a new plan is needed.

"Behind every great pirate, there is a great butt."
-Guybrush Threepwood-
Find all posts by this user
Like Post Quote this message in a reply
[+] 2 users Like undergroundp's post
01-02-2015, 08:12 AM
RE: New greek finance minister.
What do you think the best option for Greece is then, right now? I'm an amateur on economics and humbly wish to learn Tongue

Saints live in flames; wise men, next to them.
Find all posts by this user
Like Post Quote this message in a reply
01-02-2015, 08:18 AM
RE: New greek finance minister.
(01-02-2015 08:12 AM)SunnyD1 Wrote:  What do you think the best option for Greece is then, right now? I'm an amateur on economics and humbly wish to learn Tongue

Is this a question for me? Consider

If yes, I hardly know anything about economics myself, I just follow the news and I've been rather interested in the new government.

I don't know if there's any solution whatsoever, since I personally believe that there is absolutely no way for Greece to ever be able to pay all the debt, or even be able to pay some of it without going down.

But hey, my opinion is that I shouldn't be paying for a debt I'm not responsible for either, so Tongue

"Behind every great pirate, there is a great butt."
-Guybrush Threepwood-
Find all posts by this user
Like Post Quote this message in a reply
[+] 1 user Likes undergroundp's post
01-02-2015, 08:37 AM
RE: New greek finance minister.
(01-02-2015 08:18 AM)undergroundp Wrote:  
(01-02-2015 08:12 AM)SunnyD1 Wrote:  What do you think the best option for Greece is then, right now? I'm an amateur on economics and humbly wish to learn Tongue

Is this a question for me? Consider

If yes, I hardly know anything about economics myself, I just follow the news and I've been rather interested in the new government.

I don't know if there's any solution whatsoever, since I personally believe that there is absolutely no way for Greece to ever be able to pay all the debt, or even be able to pay some of it without going down.

But hey, my opinion is that I shouldn't be paying for a debt I'm not responsible for either, so Tongue

It was for anyone really, but thanks for the input Smile

I don't know if it's possible but it seems that freezing the debt for a few years may help Greece and in return the rest of Europe.

Saints live in flames; wise men, next to them.
Find all posts by this user
Like Post Quote this message in a reply
01-02-2015, 09:46 AM
RE: New greek finance minister.
Well from my limited self taught understanding insolvency falls into two catergories.

1: A person or company can have a positive balance sheet (meaning on paper they have more coming in than going out) but for whatever reason they have limited access to money/liquidity to service/pay their current debt obligations.

2: A person or company has a negative balance sheet (meaning on paper their debts outweigh their assests) and they cannot meet their debt obligations.

Again he does not elaborate on which term of insolvency he means, nor does he point to which particular areas of the greek economy his statement applies. To me it sounds like he is saying that no matter how much liquidity you pump into the greek economy through baillouts, quantitative easing or whatever, parts of the system will remain insolvent. So all of the bailouts that future generations of greeks have become indebted too, alongside austerity, have been almost for nothing as the EU, ECB and IMF have been flogging a dead horse, the greatest minds in the economic world (you would presume as they run the show) have been throwing bad money after bad, for five years.

Thays my deeply biased view on the matter anyway... Tongue

I feel so much, and yet I feel nothing.
I am a rock, I am the sky, the birds and the trees and everything beyond.
I am the wind, in the fields in which I roar. I am the water, in which I drown.
Find all posts by this user
Like Post Quote this message in a reply
[+] 2 users Like bemore's post
01-02-2015, 09:49 AM
RE: New greek finance minister.
(01-02-2015 09:46 AM)bemore Wrote:  Well from my limited self taught understanding insolvency falls into two catergories.

1: A person or company can have a positive balance sheet (meaning on paper they have more coming in than going out) but for whatever reason they have limited access to money/liquidity to service/pay their current debt obligations.

2: A person or company has a negative balance sheet (meaning on paper their debts outweigh their assests) and they cannot meet their debt obligations.

Again he does not elaborate on which term of insolvency he means, nor does he point to which particular areas of the greek economy his statement applies. To me it sounds like he is saying that no matter how much liquidity you pump into the greek economy through baillouts, quantitative easing or whatever, parts of the system will remain insolvent. So all of the bailouts that future generations of greeks have become indebted too, alongside austerity, have been almost for nothing as the EU, ECB and IMF have been flogging a dead horse, the greatest minds in the economic world (you would presume as they run the show) have been throwing bad money after bad, for five years.

Thays my deeply biased view on the matter anyway... Tongue

That seems a sound analysis to me. It seems that other anti-EU groups are spouting the same view.

Saints live in flames; wise men, next to them.
Find all posts by this user
Like Post Quote this message in a reply
01-02-2015, 10:02 AM
RE: New greek finance minister.
(01-02-2015 09:46 AM)bemore Wrote:  Well from my limited self taught understanding insolvency falls into two catergories.

1: A person or company can have a positive balance sheet (meaning on paper they have more coming in than going out) but for whatever reason they have limited access to money/liquidity to service/pay their current debt obligations.

2: A person or company has a negative balance sheet (meaning on paper their debts outweigh their assests) and they cannot meet their debt obligations.

Again he does not elaborate on which term of insolvency he means, nor does he point to which particular areas of the greek economy his statement applies. To me it sounds like he is saying that no matter how much liquidity you pump into the greek economy through baillouts, quantitative easing or whatever, parts of the system will remain insolvent. So all of the bailouts that future generations of greeks have become indebted too, alongside austerity, have been almost for nothing as the EU, ECB and IMF have been flogging a dead horse, the greatest minds in the economic world (you would presume as they run the show) have been throwing bad money after bad, for five years.

Thays my deeply biased view on the matter anyway... Tongue

It's pretty much what you're saying, I think.

I don't think the EU, ECB and IMF are the saints that help save countries though. They don't even care if we all die, as long as they keep getting money. Do you think they have given more money than they have received? They don't want Greece to be out of debt, because then they won't be receiving anything.

It's just how loans work. You get 1000, you give back 10.000. And it's never enough.

The way I see it, what they care about the most is getting money and saving face (by punishing Greece for being irresponsible). Those bailouts were inevitable, who would trust the EU if they didn't (pretend to) help those in need?

His example in that interview of a friend borrowing money when in debt was spot-on.

"Behind every great pirate, there is a great butt."
-Guybrush Threepwood-
Find all posts by this user
Like Post Quote this message in a reply
[+] 4 users Like undergroundp's post
01-02-2015, 12:48 PM (This post was last modified: 01-02-2015 01:08 PM by Bucky Ball.)
RE: New greek finance minister.
(01-02-2015 06:15 AM)bemore Wrote:  The new greek finance minister did an interview with the bbc the other day. He said something really interesting that i would like to hear peoples opinions on.

http://www.bbc.co.uk/news/world-europe-31072321

The part that i mean in particular is where he says "The disease that we are facing in greece at the moment is that a problem of insolvency, for five years has been dealt with a problem of liquidity".

He hasnt elaborated on what he means by this, who the insolvent parties are and what his alternatives are going to be to deal with the "disease", so it would be cool to hear what other people take by his words.

I think he wants more of the debt forgiven. Like a country declaring bankruptcy. It would probably set a very bad precedent, after decades of over-spending, and handing out benefits (and corruption) they could not afford. Not sure what the current numbers are, but before the beginning of the Greek mess a few years ago, the average retirement age in Greece was 55, while in the rest of Europe was higher, (except maybe not France). It's probably, in the long run, just a small step in "transparentization" of their economy. An audit-able, transparent economy and banking system is fundamental to democratic society.

Insufferable know-it-all.Einstein God has a plan for us. Please stop screwing it up with your prayers.
Find all posts by this user
Like Post Quote this message in a reply
01-02-2015, 12:54 PM
RE: New greek finance minister.
(01-02-2015 10:02 AM)undergroundp Wrote:  It's just how loans work. You get 1000, you give back 10.000. And it's never enough.

Really???

I'll go for that loan.....



(sure it's cruel to take advantage of typographical errors, but hey -- fun is, where you find it...) Smile

.......................................

The difference between prayer and masturbation - is when a guy is through masturbating - he has something to show for his efforts.
Find all posts by this user
Like Post Quote this message in a reply
Post Reply
Forum Jump: