The soap opera continues. We will hear more on this in near future. If any of this is true, we hope the Greek bail out plan was a little more thouroughly well thought by the might Strauss Kahn.
The maid said she tried a variety of tactics to get herself out of the room and away from Strauss-Kahn. She said, “my manager is in the hallway,” which he wasn’t — but the former IMF chief wasn’t scared off. The single mother allegedly told the Frenchman that the job was important to her and any conflict with a hotel guest would result in her losing her job.
“Please stop. I need my job, I can’t lose my job, don’t do this. I will lose my job. Please, please stop! Please stop!” she told Strauss-Kahn, according to law enforcement sources.
Strauss-Kahn allegedly responded: “No, baby. Don’t worry, you’re not going to lose your job. Please, baby, don’t worry,” Strauss-Kahn responded, according to investigators. “Don’t you know who I am? Don’t you know who I am?”
Read more: http://www.foxnews.com/us/2011/05/23/exclusive-dsk-told-maid-dont-you-know-who-i-am-during-alleged-sex-attack/#ixzz1NFmw7GW2
Looks like the action in Europe is going to continue. A total lack of trust in Greek politics, austerity and a credible plan to fix the economy is unfolding. Capital markets are closed to Greece, investors are not buying the mumbo jumbo from Greece. Looks like next word to remember is “reprofiling“. Any way to short the ECB? Below Google translation from FD.NL.
The euro countries have secretly started preparing for an extension of the Greek term debt and the establishment of an independent Greek authority to sell state assets.
That report Brussels sources. The plans, designed to help Athens meet its financial obligations, are extremely sensitive. The European Central Bank (ECB) is opposed to restructuring of the Greek debt. This part of investors would have to give up their claims. The ECB fears that this act the European financial sector ending up in a new crisis.
According to sources, officials of the euro countries are already working on the technical preparation of a mild form of restructuring. This includes “reprofiling” of the debt, or a short extension of the maturity of bonds.
Minister of Finance Jan Kees de Jager, who yesterday talks with ECB President Jean-Claude Trichet, will re-profiling ‘a serious option only if necessary culmination of a total package. ” He wants Greece until his promises of reforms true.
Carney argues for a form of re-profiling in which the private sector remains concerned that without a ‘credit event’ is required. This can in a voluntary extension of the maturity of bonds with up to three years. In a ‘credit event’, owners of Greek entitled to compensation massive debt through credit default swaps on the bonds they have concluded the risk for separation. This would be a new shock wave in the markets may cause.
Last step in long process
Also, European Commissioner Olli Rehn of Economy and President Jean-Claude Juncker of the eurozone yesterday called “reprofiling” to solve the Greek problem.
The euro zone, according to Juncker Athens just for the sake if it has completed its austerity program. “Only then can we think about extending the appointments of public and private loans and reduce interest rates. It would be the last step in a very long process. ”
Condition, according to Juncker, however, that the credit rating maneuver is not perceived as a failure of the Greek government, either a default. “Otherwise, banks would have to write off billions, with incalculable consequences for the capital markets.”
The euro countries are also examining a suggestion by Minister De Jager. This suggested that the slow pace of privatization in Greece owned by the government to take and transfer to an independent body. “I would welcome you as our Greek friends set up a privatization agency, which is based on the German Treuhandanstalt ‘responded Juncker. The Treuhand privatized SOEs in the nineties and property from the former GDR.
As we write the below rates make new highs in Greece.
*GREEK 2-YEAR NOTE YIELD RISES 93 BPS TO EURO-ERA RECORD 27.18%
Austerity sucks, but you still need to do it. During last night’s negotiations Greece wants to raise taxes . For the Greek population already in crisis mood, this message won’t make them cheer. As we have argued, Greece need to take the big STOP, maybe even follow Belarus move last night and devaluate, but that on the other hand means leaving Euro…
The government’s midterm fiscal program, which was discussed on Monday during a tense cabinet meeting and is to be debated further on Tuesday between Prime Minister George Papandreou and his political rivals, aims to raise 6.4 billion euros through the imposition of additional direct and indirect taxes, it emerged yesterday. Of these, 4.8 billion euros’ worth have been approved by the Cabinet, while the remainder are still under discussion.
Among the measures to be implemented, assuming they are voted through Parliament later this week, is the transfer of several goods and services from the medium 13 percent value-added tax (VAT) bracket to the higher 23 percent bracket as well as the abolition of tax breaks, the imposition of taxes on natural gas and on soft drinks and an increase in road tax. (Kathimerini)
Great piece from FT’s Short view.