Europeans are going to bail out Greek banks no matter what

This is what the incoming governor of the European Central bank has implied.

In Athens News today Mario Draghi is quoted as saying “As a haircut is implemented they are going to have a capital loss, and often, probably, their capital would be completely wiped out,” Draghi said. “So more money would be needed.”

Well at least he his honest. Either Europeans are going to prop up the Greek government by issuing loans to help the Greek government pay their interest payments or they can choose not to but if they do choose not to help the Greek government, Europeans will be forced to bail out Greek banks directly I assume because they will be too big too fail.

So either way Europeans, Germans, Greeks, Dutch…… will pay. The people have no choice. The stability of the financial system depends on it.

What has to be borne in mind that the ECB is owned by the central banks of the countries in the Euro and these Central Banks are owned by the banks in country. Given this I believe that the ECB is only ever going to act in the interest of the banks and not in the interests of the people. Be the people by Greek, German, Spanish whatever.

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