Cyprus-Forum.com

[yialousa1971]

This article is dedicated to all those who show the finger at Greece.

An interview with the former Prime Minister of Italy, Massimo D'Alema, caused panic to our lenders.

Massimo D'Alema, speaking in RaiNews24, revealed NET, how 220 billion of the 250 billion euros of European assistance to Greece, directly went to the German, French and to a lesser extent the Italian banks.

"We gave Greece 250 billion. euro, but not on pensions for Greeks but to pay interest on banks said the former prime minister, explaining that we have a single currency, but with completely different levels of competitiveness and economic strength.

"In a poor country like Greece, enormous amounts transferred in a rich country like Germany by the difference in interest rates.

The poor country is getting poorer, the rich richer country "openly says D'Alema.

"When the impoverished country can no longer pay debts coming European aid.

We give Greece 250 bn. euro, but not for pensions of the Greeks, but to pay interest on the German, French and a small percentage in Italian.

Of the 250 billion euros, 220 billion euros went directly to the German, French and Italian banks says the Italian center-left and stressed:

"In fact, when it is said that we pay the pensions of the Greeks-not, we pay the German banks.

This is the pure truth. The money made a circle, but the Greeks did not even sniff the smell of the euros.

Το διαβάσαμε από το: ΠΑΓΩΣΕ Η ΕΥPΩΠΗ | "Από τα 250 δις που πήρε η Eλλάδα, τα 220 δις πήγαν σε...

http://thesecretrealtruth.blogspot.com/ ... z3fuhlo0t1

[erolz66]

I take out a £200,000 mortgage with bank A. Two years later I take out a £220,000 mortgage with another bank, use 200,000 of it to pay back the first bank and then go around outraged telling everyone that I borrowed 220,000 from a bank and 200,000 of it went straight to banks and I only got 20,000 of it yet am paying for a debt of 220,000.

Does that make it a bit clearer ?

[GreekIslandGirl]

I take out a £200,000 mortgage with bank A. Two years later I take out a £220,000 mortgage with another bank, use 200,000 of it to pay back the first bank and then go around outraged telling everyone that I borrowed 220,000 from a bank and 200,000 of it went straight to banks and I only got 20,000 of it yet am paying for a debt of 220,000.

Does that make it a bit clearer ?

That's not the whole picture, erolz!

You've ignored the interest accrued in 2 years on the original loan of £200,000.

In Greece's case, subsequent loans only paid back the (arbitrary and exorbitant) interest rates the bankers imposed on the original loan. So then, they gave Greece more money so that they made themselves some money off the interest they had made up.

Your original loan of £200,000 could be made to look like £400,000 after 2 years because of added interest (arbitrary, a money-making scheme). Think about that now!

[erolz66]

I take out a 200,000 loan

Over two years I make monthly repayments on the loan made up of interest (the bulk) and paying back the capital sum. After two years the capital sum has reduced
or
Over two years I make monthly repayments on the loan of only the interest. After two years the capital sum remains at 200,000
or
Over two years I make no monthly repayments on the loan at all. After two years the capital sum has increased to 200,000 + the interest I was due to pay previously but did not pay.

That is how loans work. The capital sum only increases if I fail to make (interest part) payments.

[Get Real!]

I sometimes wonder if Greeks have normal mortgages or if they have some sort of a Stalinist cooperative method for building homes because they all seem clueless of their rights and responsibilities in these things…

It’s like an entire nation doesn’t understand borrowing…

[GreekIslandGirl]

That's all very well and good, erolz, if the interest rate is set at a constant and reasonable amount - but when the banks also have the right to make decisions on increasing interest rates - whenever they want - based on some imaginary risk assessment, then you have the equivalent of loan sharks like Wonga where the amount you owe them becomes thousands of times greater than what you had initially.

[erolz66]

Let me try and be clearer here.

Firstly this is in no way 'anti Greek'. What I am 'anti' is 'woolly thinking'

When you see a headline like "Of the 250 billion Greece got,220 billion went to the banks"

It creates an impression that the banks suddenly get a 'free' 220 billion and all the Greeks get is the remaining 30 bn and the obligation on 250bn of debt. This however is only the 'middle' of the story. The banks did not get a 'free' 220 billion. They got back the capital they lent to the Greeks previously, and which the Greeks DID get + the interest on that original loan, which was the only reason they made the loan - they are commercial profit making enterprises. The part of the second loan that went to the 'banks' represents merely a transfer of the risk from the original banks to effectively EU tax payers.

[GreekIslandGirl]

I sometimes wonder if Greeks have normal mortgages or if they have some sort of a Stalinist cooperative method for building homes because they all seem clueless of their rights and responsibilities in these things…

It’s like an entire nation doesn’t understand borrowing…

Most Greeks don't have mortgages - and they have tended to hold onto family land. That's why the Germans are trying to force them with these made-up measures to start selling the family silver!

[Get Real!]

I sometimes wonder if Greeks have normal mortgages or if they have some sort of a Stalinist cooperative method for building homes because they all seem clueless of their rights and responsibilities in these things…

It’s like an entire nation doesn’t understand borrowing…

Most Greeks don't have mortgages - and they have tended to hold onto family land. That's why the Germans are trying to force them with these made-up measures to start selling the family silver!

I have no idea but I’m baffled; what about car loans or personal loans, how does the finance system work there?

[GreekIslandGirl]

I sometimes wonder if Greeks have normal mortgages or if they have some sort of a Stalinist cooperative method for building homes because they all seem clueless of their rights and responsibilities in these things…

It’s like an entire nation doesn’t understand borrowing…

Most Greeks don't have mortgages - and they have tended to hold onto family land. That's why the Germans are trying to force them with these made-up measures to start selling the family silver!

I have no idea but I’m baffled; what about car loans or personal loans, how does the finance system work there?

I dunno!

But, last time I saw figures, personal debt in Greece was among the lowest in Europe.