Community | July 01, 2011 | 102 comments

The Impossible and the Inevitable - The Greeks are now being forced to sell their country to satisfy the bankers.

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Schnookums
39 airports, 850 ports, railways, motorways, sewage works, a couple of energy companies, banks, defence groups, thousands of acres of land for development, casinos and Greece's national lottery.

All these things are for sale in Greece. As part of the IMF/ECB/EU bailout deal Athens voted in this week, this wholesale firesale of what amounts to something close to an entire public economy, is supposed to bring in €50 billion ($72 billion). And what will Greece be left with afterwards? They’d better come up with something good, because estimates are that the firesale will fall short by some 75%. Kerin Hope, Ralph Atkins and Gill Plimmer in the Financial Times:


**Greece faces 'fire sale' shortfall**

"The austerity measures call for an independent privatisation agency to be established within weeks to handle a programme of disposals, including the sale of strategic stakes in state- owned utilities and leases in state-owned property for tourist development. Independent research suggests, however, that Greece will struggle to raise much more than a quarter of the €50 billion it needs from the assets sales and privatisations unless it adds more prime land and cultural heritage to its sales list.

Only €13bn of assets are ready to sell, leaving a €37bn shortfall, says a study by the Privatisation Barometer, a Milan-based institute sponsored by Fondazione Eni Enrico Mattei and KPMG. This includes €6.6bn from offloading stakes in 15 listed groups and an "optimistic" €7bn from the sale of 70 unlisted groups, where the yields are more difficult to assess. "At this stage, no one really knows what Greece Inc is worth, but it’s clear that it will fall short," said Bernardo Bortolotti, a corporate finance professor at the University of Turin who produced the analysis."


Greece Inc. Put up for sale by a bunch of foreign governments and creditors and a government made up of domestic elites. Something here stinks. Did the IMF, ECB and EU really have no idea at all that the firesale sale profits would be far short of €50 billion? And if they did, which looks far more likely, what does that tell us? And what happens after that disppointing sale?

First, back to the reasons behind the expected firesale shortfall. Rupert Neate for the Guardian:......

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102 comments // The Impossible and the Inevitable - The Greeks are now being forced to sell their country to satisfy the bankers.

  • PigFarmington
  • PIANORAMA
  • PIANORAMA
  • JPSayles
  • Buckeye_Bill
  • Buckeye_Bill
    • +1
      Buckeye_Bill  
    • I recall how the Greek economy was beginning to teeter towards collapse when they funded the Olympics. Many were saying how that was going to be the downfall of their government. I guess they were correct. National pride costs. Look how it's strangled our economy by being the police force of the world. Democracy to be spread throughout the earth. The Bush Doctrine at work. Nation-building at its finest, right?

      Riiiiiiiiiiiiiight.

      Oh...and what's the Republican Plan? To PRIVATIZE everything. Seems that the Greeks are learning that valuable lesson from our version of fascists...the Teahadists!

    • 11 months ago
  • PIANORAMA
  • nardo1224
    • +2
      nardo1224  
    • This was just a test run, the real deal is when it comes here to America! Oh, wait a minute, it's already here, they just haven't pushed the activation button yet.

    • 11 months ago
  • PIANORAMA
  • ColeRayne
    • +2
      ColeRayne  
    • I think the Greeks will have the last laugh. They've been conquered by empires at least half a dozen times. They should be laughing at America...but maybe they think we can learn something. I will be so unpopular for posting this....uuughhh!

    • 11 months ago
  • ColeRayne
  • punman
  • COMMONSENSEFORCOMMONGOOD_COM
  • EmileZ
  • 2hellnwait
  • Schnookums
  • COMMONSENSEFORCOMMONGOOD_COM
  • dwb2585
    • +3
      dwb2585  
    • It doesnt matter if they are right-wing or left-wing, they are dropping like an ostrich.

      Corruption knows nothing of direction. We will blame our left hand; we will blame our right hand. All the while, both are holding lead wieght and niether will lift us up. It's time for a NEW direction.

    • 11 months ago
  • UtopianSky
    • +3
      UtopianSky  
    • So, the government will be chopped up into tiny bits and sold to multinational corporations.

      This sounds like a Libertarian wet dream.

      All of the corporate overlords they could ever want.

      It's sad that the nation that first invented Democratic government is collapsing.

    • 11 months ago
  • Schnookums
  • Buckeye_Bill
    • 0
      Buckeye_Bill  
    • Schnookums:

      And Teddy Roosevelt is rolling in his grave! He was ousted from the Republican Party and started the Bull Moose Party because he kept our national treasures out of their greedy hands back then!

      The more things change, the more they remain the same.

      Here's a video blast from the past that best describes what we face today were issues back in 1967 and earlier. The government didn't want to hear about it then, either, since they censored this show numerous times!

      (The tea cup and moose hunting were prophetic)

    • 11 months ago
  • letsliveinpeace
  • rgrisham
  • pissedoffinarkansas
  • oppressed1
  • UtopianSky
  • rgrisham
    • +2
      rgrisham  
    • oppressed1:

      Greece, Ireland, England, Spain, Protugal and other European countries are under attack by the invisible hand of the "Free" Market and the invisible hand is sodomizing their economies with the dildo of austerity measures. Stop shoveling your shit in my direction because it aint wanted here!

    • 11 months ago
  • oppressed1
    • -3
      oppressed1  
    • UtopianSky:

      0 1-12,000
      18 12,001-16,000
      24 16,001-22,000
      26 22,001-26,000
      32 26,001-32,000
      36 32,001-40,000
      38 40,001-60,000
      40 60,001-100,000
      45 100,001 and over

      Pretty sure 45% of their pay check is their fair share. People retiring at 48 with out of control pensions, and unaffordable medical care is the reason of Greece collapse. What makes you so entitled. That you think the rich should have to pay for your life.

    • 11 months ago
  • oppressed1
    • -4
      oppressed1  
    • rgrisham:

      Or the fact that they dont really do anything in those countries, but be lazy as fuck. They retire at 48, and expect the top 2% to take care of them until they die. Ive been to Spain ive seen the people "living" instead of "working.

    • 11 months ago
  • rgrisham
    • +4
      rgrisham  
    • oppressed1:

      I love how people like you make wealthy people out to be victims. I don't know what world you live in but I'm not interested in living in it. Take your guff and tell it to the devil!

    • 11 months ago
  • UtopianSky
    • +2
      UtopianSky  
    • oppressed1:

      I don't know where you got the numbers and I don't care- what the tax rates are does not indicate what people actually PAY.

      Greece is well known for huge tax loopholes, and the rich pay practically nothing.

      When the government gets no income, the government collapses.

    • 11 months ago
  • EmileZ
  • damush
  • totally_dilapidated
  • alexandrek
  • SoLeZydeco
  • nikonwilly
    • +3
      nikonwilly  
    • I believe this is only the beginning of the eventual chaos that's going to erupt around the world if the banking cartels and elite corporations do not stop this financial rape of the working people....and maybe this is their plan...the eruption of chaos across the globe would be their justification for a, New world order( for lack of a better term) ..once this begins there will be no going back.. wasn't there a BOC song called, "Cities in Flame"....

    • 11 months ago
  • dwb2585
  • jsayler
    • +2
      jsayler  
    • The World is looking upon the Greek workers as greedy bastards who want what they don't deserve. Unfortunately, the media is not covering the reality of the total situation. Should the workers have to take some cuts? Probably, sure but the government has chosen to ensure that there is no equal attention to taking a hit from the wealthy.

      There is no shared sacrifice there, either!

    • 11 months ago
  • hurleyburly
    • -1
      hurleyburly  
    • What will Greece have except for tourism?..which from the recent pics...I don't think will be hanging on travel agencies walls anytime soon. I don't pretend to know all the ins and outs of this crisis...but, you can smell carpetbaggers a mile away.

    • 11 months ago
  • oppressed1
  • jsayler
  • artemis6
  • hurleyburly
  • Jakaro
    • +4
      Jakaro  
    • Emucratic:

      As a firm believer in the dignity of Unionized labor, I understand that some unions can be corrupt. As can every other organisation in any facet of life. Your opening statement seems to paint the whole problem with the same brush and wreaks of right wing idealogy. It would be great if you could support your observation that organized working class families who sit at a bargaining table simply to earn a living wage caused the entire economy of a country to collapse. Thank you.

    • 11 months ago
  • jsayler
    • +2
      jsayler  
    • Emucratic:

      Many of the unions were probably lead by corrupted politicians but the problem is that the wealthy controlled the unions and they threw the workers under the bus. They lose everything and those that created the problem suffer very little or not at all.

      Violence happens even to those not inclined to violence but when your life and the lives of your family members are at stake, it can push even the most docile over the edge. I consider myself very nonviolent but if someone were to threaten a member of my family or me, I would probably react with appropriate violence to subdue and stop the attack.

    • 11 months ago
  • jsayler
    • +1
      jsayler  
    • Jakaro:

      I, too, believe in collective bargaining and this Country's need to get back to understanding that unions are not trying to take jobs away from anyone (as the "right to work" States would have us all believe). We need to ensure that our own unions are clean and independent.

      Over the past couple of decades too many unions have become involved in activities which could be construed as conflict of interest. Our unions should not be selling anything to its members; not insurance, not pensions, not anything that they subsequently earn an additional income from. Our unions should live not beyond the means of the ability of members to pay dues. We see too often that unions have abused their power by creating little empires that its own members are not allowed to question.

      Truly, our unions for the most part are great examples of keeping the best interests of their members as their fundamental objective and obligation. Just like with many charitable organizations, they have become so big and take in so much money that they have forgotten why they operate.

      When it became allowable for entities to use pension matches as general funds until time to use them, the system failed our workers very badly. When workers pay into their pension funds, the empolyer who bargained in good faith to provide a match or partial match has NOT placed those funds off limits--the continued to use them in an many they chose. This was wrong to start and now when many workers are seeking retirement, the companies are faced with coming up with the funds and many can't find them or don't want to find them. Where did they go? Seeking relief, they sought out the Republican party to nullify their (the companies) liability claiming that the workers are being greedy NOW for something that may have been negotiated maybe fifteen or twenty years earlier.

      Blame to go around is all I'm saying!

    • 11 months ago
  • JanforGore
    • +3
      JanforGore  
    • This does not bode well for the world at large. I also just posted about privatization of water being part of these austerity measures. Again, not good.

    • 11 months ago
  • Buckeye_Bill
  • jonlemnh
  • kennymotown
  • dalistuff
  • uShine
  • jonlemnh
  • artemis6
  • richardparks
  • Paratus
  • jonlemnh
  • Mark701
    • +1
      Mark701  
    • Paratus:

      Indeed. Our own country was formed in the violent revolution supported by our socialist founding fathers. Are you serious? There is WAY more at stake in Greece than pension payments. Their government wants to sell off their countries assets. How would you feel if China was allowed to buy the Washington Monument, Yellowstone Park or Mount Rushmore?? Sheez.

    • 11 months ago
  • artemis6
  • UtopianSky
    • +1
      UtopianSky  
    • Paratus:

      As usual, every post you make shows you have absolutely no idea what you are talking about.

      One wonders why you even post- you simply make Conservatives in general look bad; not as if that is hard to do, of course.

    • 11 months ago
  • SoCalFramer
    • 0
      SoCalFramer  
    • This sell off of Greece is so wrong on every level. That police officer on fire is not the bad guy but a tool of the bad guys. I hope the people can find away to keep thier protests up and I hope politicians that allowed this sell off of the peoples property disapear.

    • 11 months ago
  • jonlemnh
  • Tim_Patrick
    • 0
      Tim_Patrick  
    • Interestingly enough, if the Republicans allow the Debt Ceiling to be hit in August, without a debt ceiling increase . . . I have a feeling the same might happen in the United States.

    • 11 months ago
  • lazloman
    • +2
      lazloman  
    • Tim_Patrick:

      I hate to be a conspiracy theorist, but I will now. There seems to be a concerted global effort to install laissez-faire capitalism around the world. What is happening in Greece is happening all around the world and the US in next. This is why the rethuglicans are being so intransigent on the budget and debt ceiling. If they cause a crisis, they will push even harder for the government to divest itself of things like SS, Medicare, Education. Any services provided by the government to its people will be privatized.

      Like most people, I don't know what goes on at the Bilderberg meetings, but this crap is probably at the top of the list.

    • 11 months ago
  • jonlemnh
    • +2
      jonlemnh  
    • This is such a shame, how is it not shown more on our national news here in the U.S. Oh wait i know because our news is bought and paid for bu big business!!!!!

    • 11 months ago
  • Buckeye_Bill
    • +4
      Buckeye_Bill  
    • The Greeks are finally catching up with us, the U.S.! We've sold off public buildings, roads, utilities and ad space on the sides of buses and public vehicles for ages now! Indiana sold out by leasing their toll roads to a company that is owned by two foreign governments for no less than seventy five years! Tennessee just became the latest in states that have enacted laws to sell ad space on their Department of Transportation vehicles as of midnight last night! Arizona wants to sell off their public buildings and then turn around and lease space so they can keep their government running in the same offices. Here in Ohio they are selling no less than a dozen school buildings in my county alone since completing a huge monstrosity this past Spring! Oh yeah, they can't afford to bus all the kids to the new school so they dropped busing high schoolers and now they have to find their own way to school or drop out. Way to go, Ohio!

      I can see it now. The White House Bed and Breakfast.

    • 11 months ago
  • COMMONSENSEFORCOMMONGOOD_COM
  • artemis6
    • +3
      artemis6  
    • Abolish money , save your selves , people of Greece ! I really hate to see this kind of robbery and rape of the planet and people .

    • 11 months ago
  • RaceBannon
    • +2
      RaceBannon  
    • artemis6:

      the abolition of money will come by our consensus when we collectively decide to stop having faith in it at which point we could stop using it. However we should keep talking about this because if a mass loss of faith does occur as things are now we'd simply kill each other in the crisis before eventually re-inventing a replacement currency... we're simple aren't we?

    • 11 months ago
  • artemis6
  • iowawashington
    • 0
      iowawashington  
    • I heard a fact yesterday during an NPR interview - Greece has supposedly been in default for 50% of the preceding 250 years. I would really like to verify that fact, but find myself stretched for time today. Can I interest a fellow member in researching that item?

      Because it completely changes the debate on Greece's finances for me. If you've been a screw up all your life, I don't have a lot of sympathy for you when your responsible relations perform an intervention.

      However, those responsible relations did make a bunch of loans they should have had very little expectation of being paid back. What kind of a bank lends money to someone that defaults every other year? Were the banks stupid, or are they usurious? In my opinion that's usually the two types of bank that lend to the poor.

    • 11 months ago
  • artemis6
    • +3
      artemis6  
    • iowawashington:

      A predator bank , that puts people in debt so as to take all . That is the game . We are all taught to consume from birth . It was a stacked deck , AGAINST the people . This is global friend . This country is just the one going through the door right now ..... Unless you are lucky , or very very clever ...

    • 11 months ago
  • COMMONSENSEFORCOMMONGOOD_COM
  • lazloman
    • +3
      lazloman  
    • The idea here is to destroy the social safety net. Why can't they use the revenues generated from these assets to pay the loans? They would still likely have to cut services to make the payments, but when the loans are paid off, those services can be brought back. If the government has to sacrifice those assets, then there is no way to return those services to the people. What we see happening here is a global problem. There is a clear concerted plan to bring unchecked capitalism everywhere, civil unrest be damned. What they will end up with is revolts all over the world and when these governments fall, the new government will likely disavow those loans.

    • 11 months ago
  • RaceBannon
    • +3
      RaceBannon  
    • They should go further and abolish money (as some of my pals over there are fighting for) while picking up the pieces and building a new society. Otherwise as mentioned "Greek Inc." is their future...

    • 11 months ago
  • attilatheblond
    • +4
      attilatheblond  
    • RaceBannon:

      XYZ Inc is in everybody's future. We are more than half way there. Back in the 80s, I noticed marquee style signs suddenly went up on school campuses all over Pima County, AZ. The marquess signs were provided by, and advertised for, corporate entities. When that happened, it was pretty obvious the corporate influence was not going to allow for real education and democracy was dead.

      There are developers in the US who have been drooling at the prospect of turning our national heritage lands into homes, vacation homes, resorts and other playgrounds for any private citizens who still have some cash to be stolen. Besides privatizing too many services so CEOs can beef up salaries via funds from the US Treasury while also making sure their private sector workers got less pay (thereby paying less personal income tax back into Treasury) less benefits, less purchasing power on Main St, the puppet pols have set about deliberately bankrupting the nation.

      Further deregulation of worker safety, environmental protection, anything that protects the common people will continue and then there will be a fire sale of American's heritage lands to deal with the GOP created deficit.

      The middle class will soon be gone. The working poor can choke to death on pollution and the Hoarder Class can whoop it up at places formerly known as national treasures and formerly accessible to all.

      IOW, they forced the Treasury into a mess we can't get out of and we are all Indians now, heading for poverty on the marginal places the Hoarders don't want to care for.

    • 11 months ago
  • artemis6
  • Mark701
    • +1
      Mark701  
    • attilatheblond:

      It's more likely that foreign entities that we owe TRILLIONS too in the form of bond payments e.g. China and Japan, would be allowed to buy up our national treasures as hard assets when our currency collapses as it inevitably will. At that point US citizens will be acting very much like the Greeks.

    • 11 months ago
  • attilatheblond
  • Mark701
    • +5
      Mark701  
    • The Greek government can agree to prostrate themselves before the IMF if they so choose. HOWEVER, that government is almost guaranteed to fall based on the events that are transpiring in that country. When that happens, all the agreements they made are null and void.

      It's also interesting to note that the term "austerity measure" is really not about austerity at all. It's about selling your home off in pieces to pay off the folks that gave you the money to over build. What is happening in Greece is nothing less than economic warfare. The terms of the "agreement" established by the IMF will, literally, put them in deeper debt than they are now.

      A simple analogy would be going into debt with a credit card you never should have been allowed to own. Then the bank forces you to use an even higher interest credit card to pay off the balance on the first one lest the bank seize your assets. Of course if you can't afford the payments on your first card, paying off the second one will be out of the question and the bank will seize your assets anyway. The goal of the banks here is to maximize your interest payments before you inevitably default when they'll take everything you have anyway.

      This is classic predatory capitalism. In this case the BEST thing for the Greek government to do would be to default and say fuck you to the banks. The result will be that the country will be dead broke. But that beats selling off your countries treasures to a bunch of banksters.

      Of course if the IMF is worried about a world wide economic ripple effect, Greece might be able to force them to lend on more reasonable terms. We shall see.

    • 11 months ago
  • Schnookums
    • +3
      Schnookums  
    • Mark701:

      The basic fact is that countries shouldn't have given up the right to issue the circulating currencies of their countries to private banks. All money is now loaned into existence, with government securities forming the base of the money supply. This system was designed by bankers, for bankers. If the Greeks were smart, they'd take this opportunity to not only exit the Euro, but exit the private central bank model of governance as well.

    • 11 months ago
  • lazloman
  • artemis6
  • artemis6
  • Introspective
    • +4
      Introspective  
    • The general conclusion is that wealth and power have never been long permanent in any place...and that they travel over the face of the earth, something like a caravan of merchants. On their arrival everything is found green and fresh; while they remain, all is bustle and abundance, and when gone, all is left trampled and bare!"

      From: An inquiry in the permanent causes of the decline and fall of powerful and wealthy nations (1805). William Playfair (1759-1823)

    • 11 months ago
  • kvb1
    • +3
      kvb1  
    • This is what happens when you move to austerity during a recession as deep as the one the world is in now. Greeks already cut their budget last year inorder to get loans, and their economy shrunk 5%. The people realize that cutting more will only make things worse, give more control to international bankers, and in the end Greece will default on their loans. Argentina went through this in the 90's, and ultimately defaulted. They have a much stronger economy now that they are not under the control of the IMF and World Bank.

      This type of unrest is spreading to the UK, and as the economies falter in Ireland and Portugal, you will see this happening there as well. If we follow the RIPublicans plans of giving more money to corporations and the rich, our economy will melt down. After the Bush tax cuts, the economy grew less than one percent. The rich and corporations do not invest money in the economy and the future, they worry about how much they can get out of it now. Tomorrow is someone eles' problem, just like Bush said about Iraq and Afghanistan when he was leaving office.

    • 11 months ago
  • Schnookums
    • +3
      Schnookums  
    • Why do I somehow feel like this might be a preview? No wait......I've seen this show before. It keeps spreading like a wildfire. I'm sure a US version will come eventually......no subtitles that way.

    • 11 months ago
  • iowawashington
    • 0
      iowawashington  
    • Schnookums:

      The US situation is entirely different. We have plenty of money to pay back our debt, we've just chosen not to (due to Republicans' tax policies). Greece does not have the money to pay back it's debt, but it's being forced to sell assets to make an attempt to pay.

    • 11 months ago
  • PressCore
    • +3
      PressCore  
    • Schnookums:

      All it takes is a small, but solidarity resolved, people like the Icelanders
      to tell the international Banksters to *#^6! themselves, which they did.
      And lo and behold the Icelanders called the bluff of the Usery Cartel.
      Result was the sky didn't fall. Their credit borrowing ability was in limbo,
      that's all. What people should understand about the Usery cartel of
      Banksters is that they're a slavery racket. Banksters entice people
      individualy & collectively as nations to sell their freedom for money by
      indenture.( Ie, they work to pay off their indentured servitude like the
      English who migrated in the holds of ships (steerage) to emigrate to
      the New World. They had 7 years to pay off their fare to their master.)
      When the too easily obtained debt becomes abusive, they default on
      the debt, incur legal judgement, and collection procedures run their
      course. If the debtors' liberty can't be forfeit, then their property can.

      The insidiousness of allowing a central bank to issue private currency,
      which has Government (collective again) obligation to redeem it, per
      coins to bailouts with public tax money, should be obvious. The public
      Treasury becomes a servant to the Banksters, and we become servants
      to the Banksters through the Government in a form of feudal system.
      The realy sinister aspect of all this becomes transparent when we realize
      that fractionalized reserves=fractionaly devalued money because the
      Banksters fraudulently abuse people and nations. They used a printing
      press, now computers & a printing press, to fabricate their Monopoly
      parlor game currency which has no backing except for working people.
      And their game plan is frraud through conversion. They use currency
      they fabricate as I. O. U.s to buy up others' property by selling debt.

      They admit they create " money " out of thin air, an impossibility, because
      they know people are too stupid to understand that real money can
      only be coined semi/precious metals...Or something else which has
      the quality of being inherently valuable, essential, finite so as to function
      as money. As a citizen who's been a History buff, and coin collector
      for 50 years, you can trace the financial demise of the USA after 1855
      simply by studying the quality & size of the coins the mints produced.
      Banksters first destroyed the perfect system of weights & measures
      which the free masons put in place to guarantee equality amongst
      the classes...And which guaranteed an ample money supply to all.
      It only took 10 years, from 1855 to 1865, for the Wall St Banksters
      to stop the Treasury mint produced Large Copper Half Cents & Cents
      to manipulate farmers with the leverage they'd gained through Fraud.
      Then it was too easy to trade in wheat futures, so that the people who
      did the work produced the food, while their masters ate the food. (See
      Lincoln's speech debating Douglas advocating slavery in 1859, when
      the first oil derrick went up in Pennsylvania, the basis for Corporate farms.

    • 11 months ago
  • Vic_Romano
  • Schnookums
  • Vic_Romano
  • Schnookums
    • +2
      Schnookums  
    • Vic_Romano:

      It would be interesting to put a representation of the greatest thinkers of all time with a group of modern politicians that have bought into the central bank model of governance and sit back and enjoy.

    • 11 months ago
  • Vic_Romano
    • +2
      Vic_Romano  
    • Schnookums:

      I certainly couldn't imagine Aristotle finding any logic behind fractional reserve banking. There's something about the ability of banks to buy off politicians with money that was just made up. I haven't been able to come up with that syllogism.

    • 11 months ago
  • kvb1
  • Buckeye_Bill
    • +2
      Buckeye_Bill  
    • Vic_Romano:

      Hmmm...the definition of philosophy is "Love of Wisdom".

      Predatory lending would come under the heading of greed, as in a trap set for the gullible.

      A wise person would not fall into a trap like that.

      So, to counter one you must have copious amounts of the other.

    • 11 months ago
  • Buckeye_Bill
    • 0
      Buckeye_Bill  
    • Schnookums:

      "It would be interesting to put a representation of the greatest thinkers of all time with a group of modern politicians that have bought into the central bank model of governance and sit back and enjoy."

      One would repel the other.

    • 11 months ago
  • Vic_Romano
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