Saturday, May 26, 2012

Update on European Financial Situation

IMF Chief Puts Pressure on Greece

IMF head Christine Lagarde is talking austerity to Greek people. Of course austerity is Greek to most of the west and it is Greek to Greek people. And her thoughts are more with the sub-Saharan Africa than the tax escaping people of Greece.

When will these silly Greeks realize that the party is over? In fact there was no party. They only gate crashed. Their behaviour might look Greek to us but it is rather simple - having been habituated to escaping taxes they are now trying to escape reality. And that is scary. Amnesia is bad, collective amnesia is worse.

Spain's Bankia: Give me 19bn Euro

Bankia was created in 2010 from the merger of seven struggling regional savings banks. It holds 32bn euros in distressed property assets. Spain's fourth-largest bank, Bankia, has already been bailed out because of its bad property loans.

Last month S&P downgraded Spain last month for it might need loan from Eurozone or IMF to bailout its banking sector.

Richest region of Spain, Catalonia, 20 % of Spain's economy too appealed for help.