Germany - Schaeuble sagt "nein" zu werfen Geld in euro Krise

[dales]

http://www.reuters.com/article/2012/06/ ... 8N20120624

(Reuters) - Throwing more money at the eurozone debt crisis will not solve the problem because the troubles have to be resolved at the cause, German Finance Minister Wolfgang Schaeuble said on Sunday.

Schaeuble also said in an interview with German TV network ZDF that Greece has not done enough to fulfill promises it made in exchange for bailout funds. Schaeuble also criticized the recent interventions by U.S. President Barack Obama.

"We have to fight the causes," Schaeuble said. "Anyone who believes that money alone or bailouts or any other solutions, or monetary policy at the ECB -- that will never resolve the problem. The causes have to be resolved."

Schaeuble added: "It's not going to help to take money to it. The decisive thing is to credibly fight the causes of the crisis. It's succeeding very well in Ireland and Portugal. It's not succeeding very well in Greece. But it must succeed in Greece. There's no other way to do this."

Schaeuble said Greece has clearly not done enough.

"Greece hasn't tried enough so far, that has to be said quite clearly," Schaeuble said. "That has to be said with respect for the domestic political difficulties. But no one on earth who has followed this issue would think that Greece has fulfilled what it has promised.

"Italy and Spain are different on this question," he added. "They're making great reform efforts."

Schaeuble dismissed advice from U.S. President Barack Obama, who has called on Europe to do more to fight the crisis.

"Mr. Obama should focus on reducing the American deficit," Schaeuble said. "It's higher than in the euro zone. You have to understand that people are always ready to give others advice quickly. Our argument is 'we're ready' (to do more). We want more Europe." [Obama should clean his own house before telling others how to clean theirs, who voted for this clown?]

(Reporting By Erik Kirschbaum)

I agree - why should Greece (and to lesser exent Italy and Spain) be allowed to suck at the teat of Germany's largesse?

[Scooter]

It's not as if Germany is contributing funds out of its own pockets to subsidize the PIGS countries (Portugal, Ireland, Greece, Spain). The introduction of the euro had benefits for many countries for different reasons. Germany benefitted because it prevented currency devaluations in other countries from undercutting its exports, thus leading to a lengthy boom in its economy. Now it doesn't want to accept the tradeoffs that come with that prosperity.

[MajGenl.Meade]

There is a lot of anger here in SA at the government's decision to put $2 billion into the IMF flood-barrier fund (designed in New Orleans) when so many live here in tin shacks without toilet facilities, water or power. "Third World supporting the fat-cat capitalist First World". It is of course a small drop in the bucket that BRICS has committed to provide.

Earlier, ANC treasurer general Mathews Phosa (told) the business colloquium: “Whenever our leaders sit ... and sign agreements ... it becomes important that we as private sector should make follow ups, should network, should do the deals.”

Evidently the ANC (not a noted "private sector" group) senses there are some "deals" to be made. Enquiring minds have no doubt what that really means.

"PIGS" - that's good! In a related story, considerable relief is being expressed that Brasil is the Latin American partner in BRICS rather than Peru.

Meade

[dgs49]

Germans culturally have an irritating habit of making accurate statements and assessments in a way that some might find offensive.

But so what? This guy is absolutely right. The Greeks are in total reliance on the receipt of a steady flow of loans from outside; they are in NO position to refuse the reasonable demands that they START to bring their fiscal house in order.

The Donald once observed that when you owe the banks a million dollars, they have you by the balls, but when you owe them a billion dollars, it is reversed. The ONLY reason the Greeks are not in bondage right now is that they are so far in debt to the world that if they give us the finger, it will fuck up the world economy and may even cause it to collapse.

[Gob]

The failure of eurozone ministers to reach a deal to give Greece its latest bailout payment threatens the whole bloc, leaders have said.

Following nearly 12 hours of talks in Brussels, the Eurogroup said it needed more time for technical work.

Greek Prime Minister Antonis Samaras said: "It's not only the future of our country, but the stability of the entire eurozone [that is at stake]."

France's finance minister insisted they were a "whisker" away from a deal.

The chairman of the Eurogroup, Jean-Claude Juncker, said ministers would meet again next week.

"Greece did what it had to do, and what it had pledged to do... whatever technical difficulties in finding a technical solution do not justify any negligence or delay," Mr Samaras said.

Greece needs the next tranche of its second bailout worth 130bn euros ($166bn; £104bn) to avoid insolvency.

The eurozone "would be threatened if we did not reach" a deal, French Finance Minister Pierre Moscovici said, before adding that "we are very close to a deal."

"We have observed that Greece had made considerable efforts," he told Europe 1 radio.

The eurozone finance ministers have been considering ways of reducing Greece's public debt, which is projected to rise to 189% of gross domestic product (GDP) by next year.

"We believe that, eventually, eurozone leaders will agree on a deal to cut Greek debt substantially," said Martin Koehring of the Economist Intelligence Unit.

[rubato]

German banks created a great deal of the problem by making loans to Greece without due diligence. They loaned money when the borrower had no realistic way to repay even absent the crisis which overtook the rest of Europe. Greece spent foolishly loaned money on infrastructure which could not be justified based on its contribution to growth. Expensive highways which are underused; for just one example. The fact that tax collection was barely enforced and that a large portion of property and income taxes were avoided in Greece was known to them at the time.

There are two parties to any loan who bear responsibility for due diligence. A commercial lender is not an 'innocent victim' if they make obviously bad loans they deserve to lose the money.


The overall cause of the crisis is the lack of regulation of the mortgage finance industry which created the bubble which caused the crash which has pulled down countries with otherwise reasonably good balance sheets. Germany regulated their own housing market, and thus avoided the crash in that way, but failed to prevent their own financial institutions from buying mortgage debt from other countries.

[rubato]

Greece needs to start collecting taxes and catching up on decades of systemic corruption.

yrs,
rubato

[oldr_n_wsr]

They loaned money when the borrower had no realistic way to repay even absent the crisis which overtook the rest of Europe.

So they now should throw good money after bad?
Maybe they made a "good faith" loan and learned.
So now they should throw more good money after bad?
Had they not made the first loan, this would have been solved then? when the rest of the eurozone was letting Germany handle the problem.
So now the Germans should throw more and more good money after bad?
Meanwhile the Greeks are rioting in the streets because their pensions and days off and holidays are being cut back? I am supposed to give them sympathy?

Imagine their reaction if Gob or Hen only had the 8 days of paid time off I have this coming year. It may hit them too but for now it's in Greece and they ain't too happy, but when there is no money to pay for it, what wil they do. Oh I know, go on the public dole like 25% of their fellow citizens. And when that runs out?

[dales]

[MajGenl.Meade]

Imagine their reaction if Gob or Hen only had the 8 days of paid time off I have this coming year.

Leaving aside the horrors of the USA, I think that's why Gob and Hen never moved to Greece in the past - they didn't like the lack of paid holidays and leave.

[Gob]

Imagine their reaction if Gob or Hen only had the 8 days of paid time off I have this coming year.

You only have eight days to use between now and December 31? Jesus mate, that's harsh!!! Mind you, I've only got 18 myself!!

[oldr_n_wsr]

Imagine their reaction if Gob or Hen only had the 8 days of paid time off I have this coming year.

You only have eight days to use between now and December 31? Jesus mate, that's harsh!!! Mind you, I've only got 18 myself!!

No, I "EARN" 8 days between my hiring date (June 11, 2012) and the next June 11 2013. So I believe I have four right now, although I might only have two as the first 3 months here I was on probation as all new employees are. (not just us alcoholics of which they know nothing about).

Most US companies start you off with some set number of days, usually a week or two for salaried employees, and less for hourly employees that you earn depending on how much time you are there. My old job that I was working for for just under 25 years, I got 6 weeks vacation and had a reserve as I never took more than 3 weeks a year vacation. I also had 600 hours of sick time as I never got sick (or just lived everyday being sick and went to work anyway). Some was paid when they layed me off and some dissapeared. But upon new employment, one usually starts over as far as paid time off according to company policy. I know in Germany, they get to transfer their vacation time from job to job, not so in the USA. Good/bad/whatever it is the way it is.

[Gob]

pssstttt! I was being sarcastic mate!

Actually, our team may change from a rostered shift to a Monday to Friday routine, so I'll only get five weeks a year if that happens. I'll still be able to build flex, and as I know the shift system change is going to be a farce, with us having to cop loads of overtime to cope with out of hours crisis, I may end up better off.

[oldr_n_wsr]

pssstttt! I was being sarcastic mate!

i know, just figured I would explain how things work here.
As you say
No worries mate.

[Gob]

Nice one!