RE: What Greece Tells Us About Politics and Economics

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RE: What Greece Tells Us About Politics and Economics - 6/16/2012 1:36:02 PM

Yachtie

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quote:

ORIGINAL: Musicmystery

If you call $188 trillion in assets "bankrupt." Or that $15 trillion enters the country each year. Or being 1/5 of the global economy.

How much of that 188 Trillion is on the hook for liabilities incurred?

The EU has a housing problem similar to the US, with inflated prices and underwater mortgages.

Ultimately, and including Greece, it boils down to a form of hyper-infrastructure expansion (both public and private) bought by debt that is coming to be realized cannot be paid. Many point fingers at various aspects such as, and especially, tax, but the chips fall on politicians / bankers / Corporations in cahoots with each other with each having its own self interest designs. China has been chasing the hyper-infrastructure dragon and it too is having its roosters come home to roost.

There is nothing intrinsically wrong with not being a top rate first world country. There is nothing intrinsically beneficial at being numero uno on the world stage or chasing such status.

With apologies to Obama, many really do believe in "yes we can" whereas, in reality (which is raising its head in abject defiance), it really is "no we can't'.

< Message edited by Yachtie -- 6/16/2012 1:37:08 PM >

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RE: What Greece Tells Us About Politics and Economics - 6/16/2012 1:42:19 PM

Moonhead

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FR:
The main things this tells us about politics and economics is "Don't invest in Greece".

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RE: What Greece Tells Us About Politics and Economics - 6/17/2012 6:45:28 AM

Musicmystery

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quote:

Wall street sold investments backed by these way overleveraged homes. When the investor found his 100,000 investment was being "gauranteed" by a 10,000 shack, shit hit the fan.

Here's your disconnect. Wall street bundled investments of disparate quality into large derivatives, making tracking the risk liability for the investments virtually untraceable. Add the crash, and it's suddenly impossible to know which banks are on sound footing, making all lending risky, tightening credit.

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RE: What Greece Tells Us About Politics and Economics - 6/17/2012 6:46:33 AM

Musicmystery

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quote:

How much of that 188 Trillion is on the hook for liabilities incurred?

$15 trillion. It's why we call it the national debt.

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RE: What Greece Tells Us About Politics and Economics - 6/17/2012 6:49:02 AM

Musicmystery

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quote:

bought by debt that is coming to be realized cannot be paid.

Of course it can be paid. We were paying it. We just don't WANT to pay it--that's the "crisis."

From what was working, we cut revenue, then added structural expenses in Iraq and Afghanistan, etc....

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RE: What Greece Tells Us About Politics and Economics - 6/17/2012 7:58:43 AM

Yachtie

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quote:

ORIGINAL: Musicmystery

quote:

How much of that 188 Trillion is on the hook for liabilities incurred?

$15 trillion. It's why we call it the national debt.

Is that number accurate? Does that 15T include unfunded liabilities? Is that number of 188T in assets accurate (mark to market)?

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RE: What Greece Tells Us About Politics and Economics - 6/17/2012 8:18:31 AM

Musicmystery

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It's your party. You don't like the numbers, you provide the research for different ones.

But you're leaving structural economics, not liking the balance sheet in favor of speculation. You've listened to politicians selling agendas too much. It doesn't include future income streams either. A silly game.

You want to cry we're broke, nothing's going to stop you. But we're not. Nothing close to it. Not even remotely close.

It's why people globally are still flocking to U.S. Treasuries.

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RE: What Greece Tells Us About Politics and Economics - 6/17/2012 12:35:11 PM

tazzygirl

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quote:

You need a private sector and a public sector, anyone that thinks you can live without either is a zealot.

And its our private sector that is killed us in the recovery efforts.

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