Are the Ministers of the EU Countries Con Men and Scammers

I normally do not write commentary or opinions or even in the first person, but today, I was reading the Wall Street Journal and came across a story on how euro nations are going to try to prop up their banks.

I was totally amazed at what is being suggested. It is like a terrible con game, a fraud. Politicians and Government Officials along with Bankers have concocted a huge network of deceit and fabrication to circumvent the legal requirement of the International Monetary Fund. Does this mean that individuals and businesses can bend the rules, break the laws and use fraud and deceit in times of crisis?

There are a lot of convicted felons we should be releasing from prison if this is the case.

This chart looks like a giant scam or it is a Ponzi scheme or one of those other schemes that con men and scammers give great names to.

This is not a way to solve debt crisis or financial crisis, it is simply a way to move it from column A to column B. Ah, and maybe that is it, Chinese checkers.

The Italian government is encouraging banks to buy public properties that the banks then can use to borrow money. As part of a broader deficit-reduction program in Portugal, the government essentially is borrowing money from bank pension funds and could use some of the funds to help state-owned companies repay bank loans. Perhaps they should ask the mafia for assistance.

Maybe the EU should contact the drug cartels of South American and ask for a loan.

It is not only the Italians, it so the cash strapped governments throughout the EU.

Governments in Germany and Spain also are using unorthodox measures to support their ailing banks.

“Most of these backdoor-type schemes seem to be limited in size and don’t address the broader problem,” said Jacques Cailloux, chief European economist at Royal Bank of Scotland.

If the EU cannot resolve their own problems or at least develop a plan to do so, why should the other nations of the world allow this type of behavior? In this case, I am in full support if the US uses their veto and pressures the IMF to avoid these type situations. The ECM, the IMF and the Finance Ministers of the World need to exert pressure on the leaders of the EU to come up with a definitive plan of action.

Each day we hear promises that fail to materialize. The Sarkozy-Merkel fiscal pact is in trouble. The Emergency Fund is unable to raise the funds that are needed. The promises of the EU Council, The EU Parliament and the EU Leaders seem to go up in smoke.

It seems that it is alright to bend the rules during times of crisis. The reason, governments, banks, funds, agencies develop rules and policies are to prevent them from acting improperly during times of need or crisis.

Commerzbank AG is negotiating with the finance ministry to transfer its troubled real-estate finance unit into a government “bad” bank. The bank and government are in talks about ways to structure the deal so it isn’t “considered” a bailout, possibly by protecting the government against some losses or paying the government a nominal fee, according to people familiar with the matter. I ask you is this correct, finding technical ways to hide the truth.

The Portuguese government is devising a complicated financial maneuver that could give the country’s banks The government just closed a plan to transfer banks’ future pension responsibilities to the state balance sheet in exchange for €6 billion in assets, which include cash, stocks and bonds. Most of the money will help the government meet deficit targets.

But about €2 billion may be shifted to struggling government-owned companies, such as transport providers. Under the plan, these companies would use the funds to pay off debts to Portugal’s banks.

“The move will allow debt repayments to public entities, contributing to a cut in loan-to-deposit ratios of Portuguese banks and helping the financing of the economy,” Finance Minister Vitor Gaspar told parliament recently.

Instead of raising more money through a Spanish government bailout fund, a central-bank spokesman said that tapping the deposit-insurance plan would leave the country’s budget goals this year intact. The deposit-guarantee fund will be refilled early next year, and the government will provide a back-stop in the meantime.

This just sounds like shift debt from place to place and hiding it away. We use to call it borrowing from Peter to pay Paul. I always thought it was illegal, it is most definitely unethical and it sure doesn’t solve any problems.