posted on Jun, 21 2011 @ 01:07 PM
The root of the problem is the greeks run up a gigantic overspend at the governmental level. 150% of GPD by some accounts, which they cannot pay back
and can no longer even afford to service.
Locked into the euro they cannot devalue their currency and export their way to growth. Its not possible.
Complaining that the greek government (a parade of them in fact) have been criminally inept gets us nowhere. The average greek is no more a valid
target of blame for his national debt than you are for yours.
Its happened. The solution for Greece is to default, withdraw from the Euro and re-introduce a much devalued Drachma. The pain of the populace will be
immense but thats inevitable now either way. At least under a default they don't sell off all the national infrastructure to international carpet
baggers in the process.
Despite media attempts to portray it as such its not a case of stupid greeks refusing our aid in a fit of pique. The bailout is not to protect/help
the greeks. Just the Irish one wasn't to help the Irish. Its to protect those in other institutions/nations who lent them money incompetently. They
shouldn't be protected. They deserve to lose their shirts. Privatising profit and socialising loss is immoral and needs to be stopped. It might as
well stop here.
The shock might well collapse the Euro and lead to devaluations all around europe, its only a surprise its taken this long.