## Saturday, March 10, 2012

### Greece in default

I've always known that the Greek default wouldn't be an important event but it was such a non-event that it has surpassed all my expectations about its invisibility. On Friday, Dow Jones rose 0.11% and NASDAQ by 0.60%, despite the news. I would bet that most people in this world don't even know that Greece is in default.

Many private creditors were kind of forced to "voluntarily" sacrifice most of their money; the rest was forced to do the same thing without any attempt to pretend that there's anything voluntary about the events. Greece has laws saying that if the government robs a certain percentage of creditors, it may rob everyone else, too. It's the latter robbery – of the money of the investors who didn't want to "participate" at all – that triggered the CDS payments. It's not a big amount of money – only $3 billion are being paid from those CDSes – but there's no doubt that Greece is in default. Previously, Fitch reduced its long-term rating of Greece from "C" to "RD", Restricted Default. Standard&Poor's used their own terminology: Greece is in "SD", Selective Default. Moody's was the last one who has noticed half a day ago; their rating is still "C" but they say that Greece is simply in "Default" without adjectives. Meanwhile, many institutions are pretending that everything is just fine and they work hard to hide that what the Greek socialist and communist scum has done was to rob a hundred of billion of euros from the private creditors. Euronews, a source funded by the European Commission, even had the arrogance to claim that "Greece has avoided default". But Greece has clearly told the creditors it isn't able to satisfy the terms of the contracts so it is indisputably in default and Euronews' hired guns are distasteful liars. Many investors in the world – well, usually those who were not robbed – feel happy that the default is a "controlled one" and no one is too hysterical anymore. Although it is surely a part of the postmodern political correctness to wish immoral scum with$2,000 monthly unemployment salaries to keep their privileges, I think this is an extremely short-sighted, unethical, and egotistic attitude.

What the left-wing scum in Greece has done should be punished. In a healthy world, the creditors would team up, created an army, and overtook Greece. Given the gargantuan amount of money that is being stolen here, hundreds of Greek politicians who have been buying their positions for other people's money should be executed at this moment because the numbers they're responsible for vastly exceed the market price of their lives. Nothing like that is going on. Millions of people are not starving even though they should. Instead, I am sure that some Greek jerks will come to my blog and laugh at me that they still have four times more money than we do although they don't have to work.

In the future, the human civilization will pay dearly for its failure to take everythimng that can be taken in the failed, fucked-up, s*cialist country called Greece. Our gradual loss of principles and standards and our increasing tolerance for behavior patterns that shouldn't be tolerated is similar to the decline of the Roman Empire but I am afraid that the decline we're going through is much more brutal.

#### 2 comments:

1. Hello, good afternoon. I have read your post using Google Translator for English is not my language. Anyway, going to Spanish words is well illustrated by the outrage that rush and I share. Do not presume that no one can laugh in Greece of their opinions, unfortunately the situacion is so awful that would be the height of fully. I think so, which is a historical moment of the rise of a black hole and only hope and wish, soon to be released again and clean energy revived and reborn. Let us hope!Your sincerely.

2. Dear Lubos,
you should study more carefully the history of the Greek debt before making statements that "Greece robbed investors" which in its greatest part is interest upon interest and the main capital paid several times. The "poor" investors, besides making a poor judgement in their investment, they made money from the Greek people using usury and speculation and the help from stupid and corrupt politicians. Moreover, if you see who lost most of the money from the "haircut", it is the Greek pension and health funds (appx 26bn Euros), greek banks (appx 50bn) as well as many greek public institutions like my university. The funds and universities had no choice in their investment: they were forced to invest on Greek bonds even when it was obvious that this was a really bad idea (i.e. after 2010). Take also into consideration that "poor investors" -like the ECB-, bought greek bonds at 25% their face value, and with a 50% haircut they still make 100% profit (they did not even want to participate in the haircut). This goes to "partnership" in Europe today.

I am REALLY sorry that we don't have brave enough politicians to have completely defaulted back in 2009, leave the euro and restart the Greek economy. Instead the European choice has been to funnel money from the European taxpayers to some "investors".

Konstantinos Anagnostopoulos
a fellow physicist from NTU Athens, Greece, konstant@mail.ntua.gr