Sunday, July 5, 2015

A Quick Solution For The Greek Banking Sector

Step 1: ECB as supervisor of the 4 large Greek bank declares them as insolvent.
Step 2: ESM takes over 100% ownership of these banks.
Step 3: ESM recapitalizes these banks.
Step 4: ESM replaces supervisory and management boards of these banks.
Step 5: ECB assures sufficient funding at all times.

During one and the same day, the 4 Greek banks would return to being the pillar of stability of the Greek economy.

What would FinMin Varoufakis say about this proposal? A blatant intervention by undemocratic EU elites? A unilateral expropriation of the Greek banking sector? None of the aforementioned!

Varoufakis has made exactly this proposal on several occasions in his blog over the last years, so he should be an enthusiastic supporter. In his interview with Paul Mason, Varoufakis promised that the situation would be resolved tomorrow, Monday, one way or another. He could certainly resolve the instability of the Greek banking sector tomorrow; if he wanted to live up to his promise, that is.


  1. Since the situation of the Greek banking sector is now the more serious issue for Greece, and has already damaged production, sales, tourism, exports... obviously there would have to be a very important reason for Greece to refuse such an offer.

    However, I doubt that the offer will be made without the demand to tie Greece into perpetual austerity from which it can never recover. In that case, it is possible the the government would reject it, especially if the referendum is a massive NO (as is epxected, from latest reports).

    I really fear that between them, the Troika and Syriza will destroy Greece (and probably the eurozone as well).

  2. WHY should the Eurozone waste even more money on Greece? Let the Greeks deal with their own mess on themselves! It's high time.

    1. Ah, the long-standing German troll. Welcome back! We missed you.

    2. Lieber Klaus Kastner, entweder Sie schmeißen diesen Troll hier raus, oder er wird die threads hier genauso ruinieren wie viele andere, wo er sachliche, zielführende Diskussionen mit seinen Provokationen u Beleidigungen sabotiert hat! Bitte nehmen Sie diese Warnung ernst, ich kenne diesen Stinkstiefel von einigen anderen Webseiten.

    3. Yes, Klaus, do show all of us whether you are part of the German arrogant mafia or a global citizen. I hope I have judged you correctly, from the past.

      For your information, this German person was posting anti-Greek propaganda for many years on very many English websites. If he wants no opposition, then let him post in German.

  3. The suggested solution looks like too quick and dirty...

    A different question: What do you think about this publication titled "Revisiting the Latvian and Greek Crises"