The right medicine for Greece

Editor, RE: “Prescribe right medicine for Greece” (The New Times, December 27).

Editor,

RE:Prescribe right medicine for Greece” (The New Times, December 27).

 

As Hans-Werner Sinn from University of Munich has aptly put it, “Europe is secretly bailing itself out.” €1.74 trillion via the infamous ECB QE program, of which €1.4 trillion, is explicitly directed towards the repurchase of Eurozone countries debt.

 

The various Eurozone central banks have been mandated to repurchase their respective government debt from the bond market in proportion to the size of the economy of the country in question.

 

So yes, the Troika’s fumbled fire extinguisher, much as directed towards Greece, perversely aims to smoother German and French bank debts to the profligate Greek philosophers who were caught flat footed: too busy dancing the night away as opposed to playing the greater fool CDO and synthetic derivatives pass-a-parcel.

Ggwanga Mujje

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