often we go to the library and read a daily financial tabloid. its local. its what you'd expect. however now and then on the page just before the rheems of figures on prices of listed companies etc, there is an article that is worth the time it takes to read.
meanwhile in athens......
on the radio one hears the word.. (khreos) χρεος a fair bit.. (its greek for debt.) if you tune into athens. mmm. (there is a big enough greek community in sydney for a greek radio station some of the programming of which comes from there.)
actually if you wanna get a fix on the news, greek news is well worth a listen. a huge experience of politics . (taking democracy away from a greek is like taking a fish out of water)..... inheritors of the empires of mesopotamia and the dynasties of egypt.. integral part of ottoman empire.. independent nation..
actually greek pop culture is very attractive and seems to be undergoing something of a blooming at the moment. its probably being building up for a while now.. dont take my word for it.. tune in..
but what i was saying is that the article in the financial paper by gerard minack, who has a job somewhere in morgan stanley( hehehe.) appears to be saying the same thing as the greek news-----.. too much debt. -------thats the problem.*. it cant just be inflated away.
----it was mark twain who said ....habits are habits and cant just be thrown out the window.. but must be coaxed down the stairs .. one step at a time.....
he (minack) suggests re-regulating banking to force comercial banks to hold more treasury paper. he seems to be arguing for a further increase in bank leverage.. (though he denies it)
he wants banks to be forced to hold 20% of their assets in treasuries but this would mean very tight credit...unless reserve requirements were relaxed.. which is saying the regulators should allow banks to be further leveraged...
he says he is not recommending this but it certainly seems like it to this humble reader of that particular blatt... which is just unbelievable. so.. he is not saying the same thing at all. he is arguing for more of the same. the greeks on the contrary are arguing that enough is enough.
my view is that people and corporations need to deleverage. debt needs to be paid down or you lose credibility .. most smoke stack economies are so deep in debt it will mean hundreds of years of servitude.. ask the greeks about losing cred. ( who incidentally were wise enough never to really have much of a smokestack.... (as far as i know they were happy enough with the olive trees and some livestock.
one doesnt hear.. 'been there... done that' in greek.... its culturally way past stating the obvious.
one more thought on the greek debt problem .. they say it was goldman sachs who led the greeks astray.. um..
has anyone ever heard the one about how many greeks it takes to fool a jew? hehehheheheheh
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* i differ from bill bonner who reckons the problem is that there are too many leeches and zombies.. primarily.. though i really respect his take. in fact in light of what minack is arguing, it maybe time to review bill's argument.
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