Greece Runs Out of Other People's Money

[eagle1462010]

When a Bond Is Not a Bond The 10th Man Investment Newsletter Mauldin Economics

Some of my friends and clients know a lot about the Greek negotiations. There is a lot to know. I try to keep it simple:

1. The Greeks are communists
2. Everyone is incentivized to get a deal done, unless
3. The Greeks overplay their hand

People are starting to figure out that Greece is probably better off just defaulting and going back to the drachma. Painful, yes, but better than this perpetual bailout purgatory where everyone loses. Greece doesn’t make the necessary reforms, and Europe just keeps throwing good money after bad.

Which leads me to the point of this essay—if Europe bails out Greece once again, will they ever realistically pay it back?

Of course not. Everyone knows this.

Then it’s not really debt, right? It’s just aid. It’s a gift.


Greece needs to default and go back to the drachma and stop trying to take everyone else down with them............

 

[SAYIT]

...Which leads me to the point of this essay—if Europe bails out Greece once again, will they ever realistically pay it back? Of course not. Everyone knows this. Then it’s not really debt, right? It’s just aid. It’s a gift...

Socialism throws a great party until they run out of OPC (Other's People's Cash).

 

[OnePercenter]

... But interest is tax deductible, and dividends aren’t.
Apple proves that a lower corporate tax rate won t matter - Fortune

If you receive the dividend check from the company that you have stock on a general account of that company, that company can not deduct. If you receive a check from a third party, all bets are off. Welcome to reality, and one of the biggest tax loopholes out there.

And one you just made up (not that others haven't tried it) in another lame attempt to wiggle out of the idiot hole you have so carefully dug for yourself. Not that a loony lefty would know (or admit) this but dividends are not only taxed (as profits) before they are distributed and are taxed again as the recipient must pay income tax on them ... thus the well established double tax hit on corp profits.

DEFINITION of 'Double Taxation'
A taxation principle referring to income taxes that are paid twice on the same source of earned income.
Double taxation occurs because corporations are considered separate legal entities from their shareholders. As such, corporations pay taxes on their annual earnings, just as individuals do. When corporations pay out dividends to shareholders, those dividend payments incur income-tax liabilities for the shareholders who receive them, even though the earnings that provided the cash to pay the dividends were already taxed at the corporate level.

http://www.investopedia.com/terms/d/double_taxation.asp#ixzz3eOSa40df

Each entity paid tax on income. Where is the problem?

Sent from my SM-T217S using Tapatalk

 

[OnePercenter]

When a Bond Is Not a Bond The 10th Man Investment Newsletter Mauldin Economics

Some of my friends and clients know a lot about the Greek negotiations. There is a lot to know. I try to keep it simple:

1. The Greeks are communists
2. Everyone is incentivized to get a deal done, unless
3. The Greeks overplay their hand

People are starting to figure out that Greece is probably better off just defaulting and going back to the drachma. Painful, yes, but better than this perpetual bailout purgatory where everyone loses. Greece doesn’t make the necessary reforms, and Europe just keeps throwing good money after bad.

Which leads me to the point of this essay—if Europe bails out Greece once again, will they ever realistically pay it back?

Of course not. Everyone knows this.

Then it’s not really debt, right? It’s just aid. It’s a gift.


Greece needs to default and go back to the drachma and stop trying to take everyone else down with them............

Still, the common cause of the financial problems in Europe with the Americans deregulating derivatives.

Sent from my SM-T217S using Tapatalk

 

[eagle1462010]

When a Bond Is Not a Bond The 10th Man Investment Newsletter Mauldin Economics

Some of my friends and clients know a lot about the Greek negotiations. There is a lot to know. I try to keep it simple:

1. The Greeks are communists
2. Everyone is incentivized to get a deal done, unless
3. The Greeks overplay their hand

People are starting to figure out that Greece is probably better off just defaulting and going back to the drachma. Painful, yes, but better than this perpetual bailout purgatory where everyone loses. Greece doesn’t make the necessary reforms, and Europe just keeps throwing good money after bad.

Which leads me to the point of this essay—if Europe bails out Greece once again, will they ever realistically pay it back?

Of course not. Everyone knows this.

Then it’s not really debt, right? It’s just aid. It’s a gift.


Greece needs to default and go back to the drachma and stop trying to take everyone else down with them............

Still, the common cause of the financial problems in Europe with the Americans deregulating derivatives.

Sent from my SM-T217S using Tapatalk

Greece decided to live beyond it's means, just as we are doing...................You can't keep escalating perpetual debt without eventually facing the consequences of it............

derivatives are BS to me and you know that.............but that is an argument for another day.

 

[OnePercenter]

When a Bond Is Not a Bond The 10th Man Investment Newsletter Mauldin Economics

Some of my friends and clients know a lot about the Greek negotiations. There is a lot to know. I try to keep it simple:

1. The Greeks are communists
2. Everyone is incentivized to get a deal done, unless
3. The Greeks overplay their hand

People are starting to figure out that Greece is probably better off just defaulting and going back to the drachma. Painful, yes, but better than this perpetual bailout purgatory where everyone loses. Greece doesn’t make the necessary reforms, and Europe just keeps throwing good money after bad.

Which leads me to the point of this essay—if Europe bails out Greece once again, will they ever realistically pay it back?

Of course not. Everyone knows this.

Then it’s not really debt, right? It’s just aid. It’s a gift.


Greece needs to default and go back to the drachma and stop trying to take everyone else down with them............

Still, the common cause of the financial problems in Europe with the Americans deregulating derivatives.

Sent from my SM-T217S using Tapatalk

Greece decided to live beyond it's means, just as we are doing...................You can't keep escalating perpetual debt without eventually facing the consequences of it............

derivatives are BS to me and you know that.............but that is an argument for another day.

The derivatives debacle was a 650 trillion dollar hit to the world economy, and a 20 trillion dollar hit to the US economy. Far from BS.

Greece was the most heavily vested country in derivatives, which is why they're having their problems today. Nothing to do with you're ignorant opinion.

Sent from my SM-T217S using Tapatalk

 

[Toddsterpatriot]

When a Bond Is Not a Bond The 10th Man Investment Newsletter Mauldin Economics

Some of my friends and clients know a lot about the Greek negotiations. There is a lot to know. I try to keep it simple:

1. The Greeks are communists
2. Everyone is incentivized to get a deal done, unless
3. The Greeks overplay their hand

People are starting to figure out that Greece is probably better off just defaulting and going back to the drachma. Painful, yes, but better than this perpetual bailout purgatory where everyone loses. Greece doesn’t make the necessary reforms, and Europe just keeps throwing good money after bad.

Which leads me to the point of this essay—if Europe bails out Greece once again, will they ever realistically pay it back?

Of course not. Everyone knows this.

Then it’s not really debt, right? It’s just aid. It’s a gift.


Greece needs to default and go back to the drachma and stop trying to take everyone else down with them............

Still, the common cause of the financial problems in Europe with the Americans deregulating derivatives.

Sent from my SM-T217S using Tapatalk

Greece decided to live beyond it's means, just as we are doing...................You can't keep escalating perpetual debt without eventually facing the consequences of it............

derivatives are BS to me and you know that.............but that is an argument for another day.

The derivatives debacle was a 650 trillion dollar hit to the world economy, and a 20 trillion dollar hit to the US economy. Far from BS.

Greece was the most heavily vested country in derivatives, which is why they're having their problems today. Nothing to do with you're ignorant opinion.

Sent from my SM-T217S using Tapatalk

Greece was the most heavily vested country in derivatives,

LOL!

 

[OnePercenter]

When a Bond Is Not a Bond The 10th Man Investment Newsletter Mauldin Economics

Some of my friends and clients know a lot about the Greek negotiations. There is a lot to know. I try to keep it simple:

1. The Greeks are communists
2. Everyone is incentivized to get a deal done, unless
3. The Greeks overplay their hand

People are starting to figure out that Greece is probably better off just defaulting and going back to the drachma. Painful, yes, but better than this perpetual bailout purgatory where everyone loses. Greece doesn’t make the necessary reforms, and Europe just keeps throwing good money after bad.

Which leads me to the point of this essay—if Europe bails out Greece once again, will they ever realistically pay it back?

Of course not. Everyone knows this.

Then it’s not really debt, right? It’s just aid. It’s a gift.


Greece needs to default and go back to the drachma and stop trying to take everyone else down with them............

Still, the common cause of the financial problems in Europe with the Americans deregulating derivatives.

Sent from my SM-T217S using Tapatalk

Greece decided to live beyond it's means, just as we are doing...................You can't keep escalating perpetual debt without eventually facing the consequences of it............

derivatives are BS to me and you know that.............but that is an argument for another day.

The derivatives debacle was a 650 trillion dollar hit to the world economy, and a 20 trillion dollar hit to the US economy. Far from BS.

Greece was the most heavily vested country in derivatives, which is why they're having their problems today. Nothing to do with you're ignorant opinion.

Sent from my SM-T217S using Tapatalk

Greece was the most heavily vested country in derivatives,

LOL!

I see you didn't post anything to try to refute the fact.

Sent from my SM-T217S using Tapatalk

 

[Toddsterpatriot]

When a Bond Is Not a Bond The 10th Man Investment Newsletter Mauldin Economics

Some of my friends and clients know a lot about the Greek negotiations. There is a lot to know. I try to keep it simple:

1. The Greeks are communists
2. Everyone is incentivized to get a deal done, unless
3. The Greeks overplay their hand

People are starting to figure out that Greece is probably better off just defaulting and going back to the drachma. Painful, yes, but better than this perpetual bailout purgatory where everyone loses. Greece doesn’t make the necessary reforms, and Europe just keeps throwing good money after bad.

Which leads me to the point of this essay—if Europe bails out Greece once again, will they ever realistically pay it back?

Of course not. Everyone knows this.

Then it’s not really debt, right? It’s just aid. It’s a gift.


Greece needs to default and go back to the drachma and stop trying to take everyone else down with them............

Still, the common cause of the financial problems in Europe with the Americans deregulating derivatives.

Sent from my SM-T217S using Tapatalk

Greece decided to live beyond it's means, just as we are doing...................You can't keep escalating perpetual debt without eventually facing the consequences of it............

derivatives are BS to me and you know that.............but that is an argument for another day.

The derivatives debacle was a 650 trillion dollar hit to the world economy, and a 20 trillion dollar hit to the US economy. Far from BS.

Greece was the most heavily vested country in derivatives, which is why they're having their problems today. Nothing to do with you're ignorant opinion.

Sent from my SM-T217S using Tapatalk

Greece was the most heavily vested country in derivatives,

LOL!

I see you didn't post anything to try to refute the fact.

Sent from my SM-T217S using Tapatalk

I didn't see you post a fact.

 

[OnePercenter]

Still, the common cause of the financial problems in Europe with the Americans deregulating derivatives.

Sent from my SM-T217S using Tapatalk

Greece decided to live beyond it's means, just as we are doing...................You can't keep escalating perpetual debt without eventually facing the consequences of it............

derivatives are BS to me and you know that.............but that is an argument for another day.

The derivatives debacle was a 650 trillion dollar hit to the world economy, and a 20 trillion dollar hit to the US economy. Far from BS.

Greece was the most heavily vested country in derivatives, which is why they're having their problems today. Nothing to do with you're ignorant opinion.

Sent from my SM-T217S using Tapatalk

Greece was the most heavily vested country in derivatives,

LOL!

I see you didn't post anything to try to refute the fact.

Sent from my SM-T217S using Tapatalk

I didn't see you post a fact.

What's wrong, you haven't paid attention since 2008?

Sent from my SM-T217S using Tapatalk

 

[The Rabbi]

The end is nigh. Greece will exit the European Union in July. Just as I predicted back in January. Suck on it.
Greece in shock as banks shut after creditor talks break down - Yahoo Finance

 

[Indofred]

Gosh, I'm so shocked - NOT.
The stupidity of the Greek politicians is frankly flabbergasting.
Over a few years, they borrowed like there was no tomorrow - then tomorrow came.
They went on to blame everyone but themselves.

 

[The Rabbi]

Gosh, I'm so shocked - NOT.
The stupidity of the Greek politicians is frankly flabbergasting.
Over a few years, they borrowed like there was no tomorrow - then tomorrow came.
They went on to blame everyone but themselves.

The Greeks elected these assholes because they promised them a never ending flow of free shit paid for by Europe. Bt even the Germans got sick and tired of paying for their whiny asses.

 

[Indofred]

There was once a man called Mr Greece.
He lived a nice, quiet life, farming for a living - He was never rich, but he was generally happy.
One day, a big bad bastard came along, full of smiles and stories all about how he was going to make Mr Greece so rich and happy.
All Mr Greece had to do was take out an unlimited credit card with the Great bastard EU bank.
Mr Greece, being a thick fucker, never even considered the day he would have to pay it back, so he went out, bought a fucking big car, a massive TV and a load of other pointless shit he didn't have the money for.
He wasn't a farmer any more; he'd become a middle class dude with a big house.
Then Mr big bastard EU bank came along, demanding the money back.

Oh fuck!

Of course, that's the extremely simplified version, but it's about right.

 

[Toddsterpatriot]

Greece decided to live beyond it's means, just as we are doing...................You can't keep escalating perpetual debt without eventually facing the consequences of it............

derivatives are BS to me and you know that.............but that is an argument for another day.

The derivatives debacle was a 650 trillion dollar hit to the world economy, and a 20 trillion dollar hit to the US economy. Far from BS.

Greece was the most heavily vested country in derivatives, which is why they're having their problems today. Nothing to do with you're ignorant opinion.

Sent from my SM-T217S using Tapatalk

Greece was the most heavily vested country in derivatives,

LOL!

I see you didn't post anything to try to refute the fact.

Sent from my SM-T217S using Tapatalk

I didn't see you post a fact.

What's wrong, you haven't paid attention since 2008?

Sent from my SM-T217S using Tapatalk

What does my attention have to do with any of your idiocy?
Dividends as a business expense? LOL!
You're the gift that keeps on giving.

 

[SAYIT]

...Not that a loony lefty would know (or admit) this but dividends are not only taxed (as profits) before they are distributed, they are taxed again as the recipient must pay income tax on them ... thus the well established double tax hit on corp profits.

Each entity paid tax on income. Where is the problem?

So after weeks of arguing that "dividends are deductible" and making insipid claims such as "Corporate America is sitting on $100 Trillion in cash" and "I made $36.5M last year and paid NO income tax," you now admit that that dividends are taxable not only to the corporation but also to the recipient?
And you wonder why rational peeps find you loony lefties to be something less than thoughtful, intelligent & honest? Sheesh.
I rest my case (for the moment).

 

[SAYIT]

The derivatives debacle was a 650 trillion dollar hit to the world economy, and a 20 trillion dollar hit to the US economy. Far from BS.

Greece was the most heavily vested country in derivatives, which is why they're having their problems today. Nothing to do with you're ignorant opinion.

Sent from my SM-T217S using Tapatalk

Greece was the most heavily vested country in derivatives,

LOL!

I see you didn't post anything to try to refute the fact.

Sent from my SM-T217S using Tapatalk

I didn't see you post a fact.

What's wrong, you haven't paid attention since 2008?

Sent from my SM-T217S using Tapatalk

What does my attention have to do with any of your idiocy?
Dividends as a business expense? LOL!
You're the gift that keeps on giving.

Poor 1% is indeed a poster child for the half-assed and ridiculously mendacious nature of leftist economic "thought." He would fit in well with Greece's current leadership.

 

[SAYIT]

The Greeks elected these assholes because they promised them a never ending flow of free shit paid for by Europe. Bt even the Germans got sick and tired of paying for their whiny asses.

Yanno, despite Greek claims that their rights are being usurped, they still have every right to make their domestic decisions. They even have a voice in such important places as the UN, NATO, and the EU (at least for now). What the Greeks don't have - and never have had - is the right to impose their decisions on their foreign creditors (which is a concept loony lefties never seems to grasp or at least never accept).

 

[The Rabbi]

The Greeks elected these assholes because they promised them a never ending flow of free shit paid for by Europe. Bt even the Germans got sick and tired of paying for their whiny asses.

Yanno, despite Greek claims that their rights are being usurped, they still have every right to make their domestic decisions. They even have a voice in such important places as the UN, NATO, and the EU (at least for now). What the Greeks don't have - and never have had - is the right to impose their decisions on their foreign creditors (which is a concept loony lefties never seems to grasp or at least never accept).

It's the Golden Rule--the one with the gold makes the rules.

 

[eagle1462010]

fyi.....only Greek Prime Minister