{"id":396,"date":"2010-04-11T12:29:00","date_gmt":"2010-04-11T16:29:00","guid":{"rendered":"http:\/\/www.intuitiveinvestor.com\/web\/?p=396"},"modified":"2018-08-20T15:40:43","modified_gmt":"2018-08-20T19:40:43","slug":"those-wily-europeans-sayin-somethin-but-doin-nothin","status":"publish","type":"post","link":"https:\/\/jasonapollovoss.com\/web\/2010\/04\/11\/those-wily-europeans-sayin-somethin-but-doin-nothin\/","title":{"rendered":"Those wily Europeans &#8211; sayin&#8217; somethin&#8217; but doin&#8217; nothin&#8217;"},"content":{"rendered":"<p><span style=\"font-size: 16px;\">This morning\u00a0details of a Greek debt bailout package were announced by\u00a0EU finance ministers.\u00a0 If Greece is unable to raise funds in capital markets then the EU might elect to lend the troubled-nation \u20ac30 billion in loans at an interest rate of 5%.<\/span><\/p>\n<p>&nbsp;<\/p>\n<p><span style=\"font-size: 16px;\"><strong>Analysis:<\/strong> In previous postings on this blog, I heavily criticized the EU for including no details of any proposed bailout plan.\u00a0 Effectively all they had said was, &#8220;we have a plan, trust us.&#8221;\u00a0 Despite saying that the EU will lend 30 billion euros at 5% to Greece there still are not enough details to assess this plan&#8217;s potential efficacy.\u00a0 For example, the plan lacks any specific triggering criteria that would have to occur before monies are lent to Greece.\u00a0 More importantly, for the \u20ac30 billion to be lent to Greece it would require the unanimous support of all of the eurozone members &#8211; and that just isn&#8217;t going to happen.\u00a0 Germany, for one, has been a vocal opponent of any bailout package.\u00a0 But the Europeans have never experienced a single unanimous vote on anything of substance.\u00a0 Circa 2004 the nations couldn&#8217;t even all agree to take the eurozone one step further beyond an economic free-trade zone into a single-unified political entity.\u00a0 So this plan is\u00a0not much\u00a0better than what existed before and is still a poorly veiled financial markets pander fest.<\/span><\/p>\n<p><span style=\"font-size: 16px;\">This week sees Greece trying to raise money for its ailing government in the financial markets.\u00a0 My thought is that the EU feels that the troubled nation will be able to raise money, especially if the auction has the imprimatur of an EU financial bailout as a back up.<\/span><\/p>\n<p>&nbsp;<\/p>\n<p><span style=\"font-size: 16px;\"><strong>Importance grade:<\/strong> 2; that the Europeans recognize that the financial markets require details is noteworthy.\u00a0 That they basically unveiled a plan that will never be used is a poor excuse for governance.\u00a0 Those wily Europeans have once again said something, but have done nothing.\u00a0 Or as they say in the car biz: all show, no go.<\/span><\/p>\n<p>&nbsp;<\/p>\n<p><span style=\"font-size: 16px;\">Jason<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>This morning\u00a0details of a Greek debt bailout package were announced by\u00a0EU finance ministers.\u00a0 If Greece is unable to raise funds in capital markets then the EU might elect to lend the troubled-nation \u20ac30 billion in loans at an interest rate of 5%. &nbsp; Analysis: In previous postings on this blog, I heavily criticized the EU [&hellip;]<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_et_pb_use_builder":"","_et_pb_old_content":"","_et_gb_content_width":"","footnotes":""},"categories":[3],"tags":[],"class_list":["post-396","post","type-post","status-publish","format-standard","hentry","category-the-blog"],"_links":{"self":[{"href":"https:\/\/jasonapollovoss.com\/web\/wp-json\/wp\/v2\/posts\/396","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/jasonapollovoss.com\/web\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/jasonapollovoss.com\/web\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/jasonapollovoss.com\/web\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/jasonapollovoss.com\/web\/wp-json\/wp\/v2\/comments?post=396"}],"version-history":[{"count":0,"href":"https:\/\/jasonapollovoss.com\/web\/wp-json\/wp\/v2\/posts\/396\/revisions"}],"wp:attachment":[{"href":"https:\/\/jasonapollovoss.com\/web\/wp-json\/wp\/v2\/media?parent=396"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/jasonapollovoss.com\/web\/wp-json\/wp\/v2\/categories?post=396"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/jasonapollovoss.com\/web\/wp-json\/wp\/v2\/tags?post=396"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}