Courtesy of Mish.
As the Greek bailout marches on, no one that matters dares ask the pertinent question: How can Greece pay back over €400 billion, when they could not pay back either of the last two bailouts?
Paul Pays Peter to Pay Paul
Supposedly we have progress. After all, Greece will be able to make its required July 20 ECB repayment.
How?
Thanks to another €86 billion bailout, Greece will be handed the money and will hand it right back. The first installment will magically be just enough for Greece to repay the ECB.
Draghi Affirms Faith
In this faith-based, can-kicking exercise, Draghi Affirms Faith in Greece’s Place in Euro.
Mario Draghi, head of the European Central Bank, affirmed his faith in Greece remaining in the euro as the central bank raised its limit on emergency loans to Greek banks by €900m over one week.
“The ECB continues to act on the assumption that Greece is and will remain a member of the euro area,” Mr Draghi said.
Banks to Open, With a Catch
Greek banks purportedly will open on Monday after having been shut for about two weeks.
Is there a catch? You bet.
Banks will be open for “all services which do not give rise to capital flight” and capital controls will remain in place.”…
