A Banquet of Consequences................from Rico

The "Financial Times" is reporting that Greek banks are preparing to raid deposits.

- Remember Cyprus? That was the template for future 'bail-ins.'

 

It was a delicious meal with 30+ years worth of courses served by politicians who came around at every election with social program laden carts (welfare, healthcare, unemployment, free food and phones, social security, ad nauseum).

- "Help yourself" they said.

- "All you can eat" they said.

- "It's free" they said, (channeling their inner Bluto Blutarsky from "Animal House" who famously said "....hey, it don't cost nuthin!").

 

Then the waiter brought over the bill for the "free" meal.

- Taxes couldn't cover it.

- Borrowed money (bonds aka debt) couldn't cover it. In fact, money had to be borrowed just to pay the interest on the borrowed money (like the $1 trillion the US borrowed in 4Q 2014 to cover the interest coming due on their debt.

 

Greece just pulled a "dine-and-dash" by defaulting and skipping out on the tab, choosing to break some EUro plates instead of washing them in the IMF-ECB kitchens.

- They were the first, but they will not be the last, to face a banquet of consequences.