But that is not all. To get the banking sector on-board the EUnion is said to offer a quid-pro-quo: Play along and you will not have to take a haircut on existing troubled sovereign debt (mainly Greece, but also Italy, Spain, Portugal and France). Since the debt of these countries needs to be serviced and reduced, since the bill has to be paid by somebody, this will mean the debt is rolled over onto the shoulders of the EUnion taxpayer and citizen. Us.
We will be told we will be bailing out the banks.
We will have to pay for those banks that squandered obscene amounts of money on ridiculously risky loans will not carry the burden of their ill-considered, even retarded decision-making. We will. And the higher taxes and falling living standards that must follow the enactment of this grubby plan will turn a depression into a slump, says the Slog.
This is not doom-laden panic mongering either. Over on Mish's we find corroboration: Latest Idiotic Plan: No Losses for Banks or Bondholders because "Losses Undermine Confidence"
That's right folks, we are going to bail out the banks and no one has to take any losses (except taxpayers of course who will "share" 100% of the risk). Otherwise there will be a "loss of confidence" in the same banks that plowed into Greek, Spanish, Irish, and Portuguese debt because supposedly there would be no losses on sovereign debt.The only true way to restore confidence is to punish banks that make stupid lending decisions, Mish writes. It is 100% of the losses should go to the bondholders, not zero percent.
Now they have taken a no-loss idea that has already blown sky high, and want to expand it to the next level: "no losses on bailouts".
This plan is so stupid only government bureaucrats could dream it up.
What is worse: Our own government is said to have been convinced by Germany's slithering financial minster Wolfgang Schäuble to agree to this abomination. PM Mark Rutte and FM Jan Kees de Jager will once again sell out our wealth, our savings and our hard work to rescue multi-million euro bonus earning bank rats. It is immoral, it is supremely unjust and it is a complete betrayal of the oath of office both of them took when they were sworn into their current position.
This cannot stand. Spread this around as much as you can. Contact the Tweede Kamer member of your choice and ask them, for once, to represent you and yours and oppose this travesty. Tell others about it. Let us try to make sure that when our governments officials come back from the ESM summit later this week they'll notice a determined lack of consent by the people and a significant part of parliament.