On Jun 30, 2011, at 5:06 PM, whynotnow7 wrote: > I was listening to Radio Pacifica about what is happening in Greece. > Basically Greece borrowed too much, the banks lent Greece too much, and the > banks cannot cover their losses now, so they ensure that the economy of > Greece will.
Maybe they could reopen the Oracle at Delphi. I know more than a few who'd be on the next plane. > The point was made that the large banks somehow steer away from any equity, > preferring instead to use any asset for purposes of leverage. It is how their > bonus structures are set up internally, so that the point of the bank is to > create and lend as much monetary value from assets as possible, with nothing > in reserve, counting on future returns to compensate for the over leveraging > of assets. So it is a monetary balloon whose value could rapidly deflate if a > large economy such as Greece's went down and others followed. >
