Tuesday, September 20, 2011

“Everyone wants to live at the expense of the state. They forget that the state lives at the expense of everyone.” — Frederic Bastiat

Greece And The Crisis Of The Governing Elite.


Sean said...

Kind of fun, watching the socialist snake devour itself, when they watched the Russians do the same thing, a short time ago. And now we watch them, while the socialist snake devours our futures and our childrens' and grandchildrens' and who knows how many generations. It doesn't work, never will, and all it does do is gobble up peoples' wealth, substance and freedom. A poor man can be free, but ownership of his produce continues his freedom. Then some jackass walks up, and talks him out of it, and here we are.

Anonymous said...

"Finnish voters have prompted their government to require collateral in exchange for any additional loans to Greece, further complicating efforts to cobble together a package in time."

Government bonds are generally considered to be "AAA rated" debt securities because they are perceived as carrying very little risk of default. This evaluation is used as a standard against which less reliable debt securities are priced.

These less-reliable, lower-rated bonds carry a discount as compared to what the government issues. The fact that the Finns are demanding collateral for loans to the Greek government yanks the rug out from under this comparative bond pricing

This creates enormous uncertainty for the capital markets.

Consequently, loans dry up and entrepreneurial activity grinds to a halt. Tax collection activities suffer accordingly. This worsens the prospect of resolving the financial crisis.

Take careful note of what happens to Greece because they are the stormy petrel of looming government defaults.


WV: oreerse--we're in debt up to oreerse and it's bound to drown us.

Anonymous said...

I just noticed the uncanny resemblance of Peter Schiff to Frederic Bastiat. Do you suppose Schiff carries on resistance to socialism because of hereditary influences? ;^)