General Discussion
In reply to the discussion: The Crisis In Europe Has Only Just Begun [View all]Eleanors38
(18,318 posts)If these banks in all their financial wisdom, acumen, and knowledge of risk made these loans to Greece, why should they not take responsibility for what seems to be some international loan-sharking? Many everyday investors are aware of penny stocks, C-rated and junk bonds. You buy them and you take a chance on WhizzKid Anti-splash Urinal selling OTC. The company knows this as well, and is as likely to fail in its capitalization as the stock-buyer.
But here you have a sovereign nation, cooked books or no, selling bonds at big interest rates, and the bank is Not likely to fail; after all, the banks loaned at rates comparable to Speedy's Cash/Pawn and knew it had the coercive power of government to back 'em up. Doesn't seem the banks took much of a "chance." Like in the bundled derivatives bubbling in our own cesspool.
Maybe they should share the financial burden, at last.