Monday, July 25, 2011

Greece A Basket Case? No

Here is a gloriously, funny, sad and incisive tour de force of the mess that is Greece.

It is very long but well worth the time it takes to read the whole thing.

The worlds smartest, most highly paid, financial experts forgot the third most important tenet of good lending, as they poured billions of dollars into a sunny, indolent black hole. They possibly forgot the second as well. These tenets are very simple.
  1. Are the assets being offered for security genuinely valuable?
  2. Can the lender really afford pay the interest and repay the principal?
  3. Does the lender have an above average personal factor? (Can he or she be trusted?)
It appears the fundamental problem is that nobody pays taxes.

Adolf's favorite quote:

On he went, describing a system that was, in its way, a thing of beauty. It mimicked the tax-collecting systems of an advanced economy—and employed a huge number of tax collectors—while it was in fact rigged to enable an entire society to cheat on their taxes. As he rose to leave, he pointed out that the waitress at the swanky tourist hotel failed to provide us with a receipt for our coffees. “There’s a reason for that,” he said. “Even this hotel doesn’t pay the sales tax it owes.”

And there is one underlying lesson. Never go to confession.

There is only one conclusion. Let them rot in their own putrid cauldron of stewing dishonesty and avarice.

One is drawn to conclude from this account that Greece is not a basket case.

A basket, unlike Greece, has some value.


Anonymous said...

Nine months late, but Adolf finally begins to get himself an education. Read Michael Lewis's analysis of what happened in the US. On second thoughts don't. Your head will explode when you cotton on that it actually wasn't Obama who single-handedly destroyed the economy.

Adolf Fiinkensein said...

Anon 9.18

If you were an identified commenter you now would be on holiday.

Obama simply finished the job started by his Democrat predecessors.

He was well aided by Barney Frank.

Anonymous said...

ROFL, yeah whatever you reckon chief.


Obama and all the Democrats played their role.
Bill Clinton, Jimmy Cater too.
Bush tried to thwart their worst excesses but Democrats blocked them.
Now, Obama aims to finish off the job his Democrat predecessors started.
Who would have thought it?
America sinking down the pan.
There's Hope and Change for you!

Anonymous said...

Old Holborn has had some good, typically pithy, commentary on the Greek problems:

Adolf Fiinkensein said...

Anon 9:18 and 9.53

The floor is a very good place for you. I hope you get bitten on the arse by the spiders in the corner of the room.

Anonymous said...

Elephants and Asses trampling the masses.

Anonymous said...

The article is interesting and reinforces (to me at least) the fact that personal ethics dictate so much and laws trying to compel what would seem to be instinctively good behaviour are often stupid. Low taxes are fine until you want something for nothing. The Greek problem seems to be that the masses can't see how stupid they are trying to have it both ways and until that awakening comes about nothing will change. Nice place to visit though.