In Hayman Advisor founder Kyle Bass’ most recent letter to investors, he talks about meeting an economist who completely validated everything he thought about Greece on a trip he recently took to the country.
He kids you not: A Greek bank’s chief economist proposed that Greek’s financial catastrophe could be “magically” fixed if only Greece’s government debt could be transferred to its population.
Asked how the government could possibly effect such a massive financial transaction*, the economist said: let’s ask Harry Potter!
Here’s the full story, from his letter (via Alpha Magazine):
One chief economist at one of the largest banks in Greece surmised that if the sovereign could transfer €100 billion of government debt to the personal balance sheets of the population that it would be a potential “magical” fix for the state’s finances (and subsequently pointed out that Greece would not be such an “outlier” as a result). When asked how the Greek state could accomplish such a feat, he said he did not know and that maybe Harry Potter could find a way. It is hard to believe, but he was completely serious.
Also humorous: he found a hospital that employed and paid 45 gardeners, yet had no garden.
Here’s how it happened:
Shortly after this meeting, my host informed me of an audit recently done on one of the largest hospitals in Athens. This hospital was hemorrhaging Euros, and the Greek government is required to make up the deficit with capital injections. Officials began an inquiry into these losses and found 45 gardeners on staff at the hospital. The most interesting fact about the hospital was that it did not have a garden.
His full letter is below.
*I believe that was supposed to be a *rhetorical* question, sir.