The government, Theodoropoulos’ new businesses, the Veremi fires and Buffett’s “pension” are in “fallout” – Economic Postman – 2024-08-18 09:34:40

It’s not good, I’m learning the messages the government is getting after the latest tragic events with the fire in northeastern Attica.

It is not just that the authorities have failed to deal with the conflagration that has consumed yet another kernel of greenery in the basin.

It’s the next day too. And this one is even more difficult.

Anger

As I am informed the issue of housing the fire victims who lost their homes is what adds to the anger.

We are talking about more than 600 residents who are already facing serious problems.

Of course, there are some measures, such as accommodation in hotels and public structures, but as I learn the thorn lies elsewhere.

Faced with rents – fire

If a family is looking to find a house up to 500 euros – covered by the subsidy for fire victims – in the northern suburbs the availability of properties is zero!

I remind here that in the support measures there is a rent subsidy of 300-500 euros depending on the family.

That is, in the suburbs, where the temporary housing of the fire victims may be sought in order to be close to their homes, the amount does not even cover half of what the landlords are asking for.

Housing crisis

The government is therefore faced with the already frightening housing crisis that is raging in the big urban centers and not only on the ruins of the fire.

As I have already learned, a package of measures to open the “closed” properties has been put on the table, in order to breathe life into the offer.

This package will include relief from ENFIA and some additional tax incentives.

With one they build with the other they tear down…

However, as a market agent explains to me, if there is not a complete overhaul of the framework, the government will make a hole in the water…

After all, rental income is taxed from the first euro and continues incrementally up to 45%.

So… what should the ENFIA cut be, when a landlord can lose even half of what he gets from rents?

In any case, the “staff of the state” must get out of their offices and find solutions.

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“Principle of man pointing”

Of course, the disconnection of the “staff” from reality does not only happen within the country.

But also outside.

Markos Veremis, of Big Pi Ventures, said it aptly, on the occasion of the conversation on X (formerly Twitter) between Trump and Musk.

Mr. Veremis pointed out the obvious: people who are quickly corrupted when they gain even a little power.

“Some immature egomaniacs were discussing the future of the world as if it were their personal playground. We’ve glorified the endpoint of success and forgotten who you’ve become until you get there,” he said in a LinkedIn post.

And he concluded: No doubt power corrupts and absolute power can corrupt absolutely (Lord Acton), but you can be Skywalker or Vader (s.p. from Starwars) and it’s entirely up to you…

Don’t forget that the “staff” here!

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Punishment or lesson?

The reality of course tends to land many in Greece, as long as the message is received and they act.

I don’t know if they got the message in Mykonos, but the consumer is always right… They shouldn’t forget that.

Of course, how can they forget it when they see consumption on the island has plummeted.

And I clarify… the consumption… not the movement!

It makes a difference.

The “alternatives”

The high cost of holidays burdening Mykonos brings tourist… low to the island since, although we are in the peak of the summer season, the occupancy of luxury accommodation is much reduced compared to previous years.

The -12% recorded in the turnover of accommodation in the second 3 months of the year, compared to last year, is no coincidence.

Some turn their backs…

Images of crowds of tourists flooding social networks as well as negative reports about the very high prices for accommodation and catering played a very important role.

The wave spread last year, with TikTok users comparing the crowds on the island in the summer to a visit to Las Vegas on New Year’s Eve.

Should we prepare for “austerity”?

To be fair, of course, the image that the island presents is not entirely in the hands of the otherwise very capable businessmen of Mykonos.

Tourism depends on many variable and unstable factors, which are often difficult to predict.

That’s how the tourism industry is, not just here…worldwide.

And when interest rates are so high worldwide, thanks to the Fed and the ECB, things get difficult.

Buffett’s Law

Does Warren Buffett finally see these difficulties and collect his cash again?

Guide for many investors again surprised the markets that he is selling stocks!

After the significant reduction of Berkshire Hathaway’s stake in Apple, Warren Buffett appears to be continuing to limit his positions in various blue chip companies on the US stock market.

Buffett probably wants cash.

There is no other way to explain that it unloaded more than $77 billion in securities in the second quarter.

Does he see something coming or has the 93-year-old legendary investor decided to retire?

I just remembered what he had said and it has become law on Wall Street: “You only see who swims naked when the tide goes out”…

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How much are Theodoropoulos’ businesses paying off

Of particular interest is the distribution of the turnover of Spyros Theodoropoulos’ Bespoke SGA Holdings, which last year reached 200 million euros

Although ION is the “jewel in the crown” of the group, in terms of turnover, the biggest contribution is made by sausages and meat preparations.

That is, Nikas, in which the company Edesma has also been operationally integrated, with a turnover of 83.3 million euros.

Chocolates and sweets, i.e. ION, follows with a turnover of 60.4 million euros.

According to Spyros Theodoropoulos in OT, Bespoke SGA Holdings will reach new heights this year.

Although as he emphasizes, the real dynamics of the group will be seen at the end of 2025.