Hi,
Just made some calculations using the same source as you … not sure, but I would have thought RWAs would go down too, with assets liquidation, unless zero risk weight of course.
Would you mind taking a look?
Will send a link via twitter.
Thank you,
Cetier
The EU’s logic is circular, Greece is illiquid because it is cut off from the flow of external funds, which cannot be offered because Greece is too distressed … because it is illiquid.
This is politics rather than economics. A simple management decision would allow funds to flow while manager figure out how to solve the longer-term liquidity — and ‘other’ — issues.
As for the ‘intermediate goods’ the issue is not wine bottles or parts for hotel laundry machines but the flood of petroleum flowing into Greece every single day in order for the country to keep its precious fleet of useless, non-remunerative automobiles running in aimless circles.
This flood must be paid for with trillions of euros borrowed from giant euro- issuing banks: DB, Soc-Gen, etc. The actual returns to the users on this transaction are nil, maybe 5% of fuel use is remunerative, the rest is for ‘lifestyle/entertainment purposes, only’.
At the end of the day, the European has no fuel — he has burned it up –, he also has no return for the waste of the fuel; he has insurmountable debts which can never be repaid only diluted with more debt. The spent fuel circles over our European’s head in the form of toxic gases … like a vengeful god,
Greece is utterly bankrupt … so is Germany. The financial and energy structure for both countries is identical, Both use a foreign currency. Germany is actually worse off b/c its precious ‘products’ cannibalize value and destroy capital everywhere they are put to use.
National suicide … how the banking system (dis)functions in detail is truly rearranging the deck chairs on the Titanic.
The Court Astrologer 
Hi,
Just made some calculations using the same source as you … not sure, but I would have thought RWAs would go down too, with assets liquidation, unless zero risk weight of course.
Would you mind taking a look?
Will send a link via twitter.
Thank you,
Cetier
The EU’s logic is circular, Greece is illiquid because it is cut off from the flow of external funds, which cannot be offered because Greece is too distressed … because it is illiquid.
This is politics rather than economics. A simple management decision would allow funds to flow while manager figure out how to solve the longer-term liquidity — and ‘other’ — issues.
As for the ‘intermediate goods’ the issue is not wine bottles or parts for hotel laundry machines but the flood of petroleum flowing into Greece every single day in order for the country to keep its precious fleet of useless, non-remunerative automobiles running in aimless circles.
This flood must be paid for with trillions of euros borrowed from giant euro- issuing banks: DB, Soc-Gen, etc. The actual returns to the users on this transaction are nil, maybe 5% of fuel use is remunerative, the rest is for ‘lifestyle/entertainment purposes, only’.
At the end of the day, the European has no fuel — he has burned it up –, he also has no return for the waste of the fuel; he has insurmountable debts which can never be repaid only diluted with more debt. The spent fuel circles over our European’s head in the form of toxic gases … like a vengeful god,
Greece is utterly bankrupt … so is Germany. The financial and energy structure for both countries is identical, Both use a foreign currency. Germany is actually worse off b/c its precious ‘products’ cannibalize value and destroy capital everywhere they are put to use.
National suicide … how the banking system (dis)functions in detail is truly rearranging the deck chairs on the Titanic.