Latest on the Greek mess.
Jean-Claude Juncker confirmed on Saturday there are talks for a Greek debt haircut in excess of 50 percent.
Junker said there were negotiations for the reduction of the value of Greek state bonds by more than 50 percent, but no details were given.
Greek banks were asked on Friday to take heavier losses than the onez outlined by the July 21 agreement, back then haircuts of 21% were discussed.
Les Echos quoted on Saturday a source saying that the Eurogroup decided on Friday to ask Greek commercial banks for a haircut of 50 to 55 percent, or we could expect a Greek default.
Ex European Central Bank vice-president Papademos wrote in Friday’s Financial Times;
“the likely financial benefits of debt restructuring would be much smaller than is often envisaged, [as] the process entails significant risks for Greece and the euro area. For institutional, political and legal reasons, there can be no debt restructuring resulting in losses that would burden official debt holders,”
Stay tuned, as this will be another interesting weekend.
To know what is wrong with the Federal Reserve, one must first understand the nature of money. Money is like any other good in our economy that emerges from the market to satisfy the needs and wants of consumers. Its particular usefulness is that it helps facilitate indirect exchange, making it easier for us to buy and sell goods because there is a common way of measuring their value. Money is not a government phenomenon, and it need not and should not be managed by government. When central banks like the Fed manage money they are engaging in price fixing, which leads not to prosperity but to disaster.
Video and full reading below.