Immenent end for Greek economy! IMF agrees to give Greece $4.2 billion.

Here is a riddle: What is the answer to too much debt?
Answer: More debt!

So the rest of the EU has to chip in to save this country from going belly up because of the Euro while the loan will be repaid (if it even can be repaid) by the taxpayers whom are suffering from nearly 20% unemployment.

This article is pretty sad but there is one paragraph that I thought was morbidly humorous:

Lagarde said the raft of reforms, spending cuts and tax hikes the government has been carrying out as part of conditions to receive bailout funds "is delivering important results: the deficit is being reduced, the economy is rebalancing and competitiveness is gradually improving."

Translation: The people are getting the shaft to guarantee that the elite bankers get paid.

Everyone knows that the economy for this country is kaput but this is clearly a last ditch effort to milk whatever can be looted. Although the article doesn't say it, I bet that the government has had to sell infrastructure to cut costs and raise capital.

Link

Expect to see even more civil unrest in the very near future.

reply to post by SuperSecretSquirrel


I think Greece should default and leave the EU to start anew. But I will admit ignorance to the aftereffects. One person defaulting is one thing, but a Nation is a whole different matter. I know it's complicated.

But to me, 4.2 Billion doesn't seem like it would do much for Greece’s economy.

reply to post by TDawgRex


The $4.2 Billion is the latest installment of... $259 BILLION!

But since it is so much money, it must be funded by many different organizations.

It seems to me that owing money to private investors that are purchasing a nation's debt is much safer than borrowing from the IMF.

Think about it, you can tell a private investor to take a hike. Tell that to the IMF and they will come back with teeth, and rally every other institution against you.

And what kind of economy is it if it needs foreign money to work ?
So that's how its done, they finance growth/economy with debt.
I thought that was called a "bubble".

You are right about them having to sell off public assets in order to pay off the loans. To be more specific Greece has to sell off $72 000 000 000 worth.

Link

Sadly i don't see any way back for the Greek citizens now.

He was ahead of his time. Default is the same, credit cant solve it by throwing credit at it.

reply to post by DannyboyUK


Your wrong on that part, there is not just money thrown at it, the bailouts are to help greece to balance the budget in the coming years while it is being reduced and the economy normalises.
That doesn't happen overnight and will take 3 to for years.
The bailout money itself exists largely of garanty's from other EU country's, no printing here.
When the deficit reduces and the economy normalises greece will see growth again and the debt to gdp ratio will decline.

The clip is valid though, but for ordinairy people, you see, we to have a leverage when we spend money we do not really have by taking a loan or a debt card.

Originally posted by Chrysalis
And what kind of economy is it if it needs foreign money to work ?

A socialist paradise, silly! They can't depend on domestic consumption because they all have 50% tax rates which forces their citizens to save up instead of consuming.

Originally posted by earthling42
reply to post by DannyboyUK

 

Your wrong on that part, there is not just money thrown at it, the bailouts are to help greece to balance the budget in the coming years while it is being reduced and the economy normalises.
That doesn't happen overnight and will take 3 to for years.

Will it ever? Greece does nothing. Produces nothing. (Kinda like the UK ) Tourists from Germany prefer France, anyway. And they don't have their own currency which they can devalue to try to help the economy.

reply to post by eldard


Good points

The devaluation can be done onterhwise to, like importing less then what is being exported.
Most what is exported is considerd of low value, olives, oliveoil, tobacco, wine, so indeed tourism is very important.