From everything I've seen, Greece is going to default on it's debt. The news today said Greece isn't going to make it's reduction targets this week. Every day there's a big meeting among European Union members to talk about Greece. Each time the stock markets go up or down depending on whatever Germany and France say.
I personally think screaming for cuts is ignorant since they will only through Greeks out of work and make matters worse. I draw a line between cuts and spending that is just stupid and does nothing to create jobs or investment. I think Greece needs to run a special to get tourists to come visit and people to buy their olive oil.
Paul McCartney and Stevie Wonder said "We all know, people are the same wherever you go." There's a big faction in Germany that wants no bailout of Greece. These same types of people live here in America. They cheer a guy with no health insurance dying because he can't get medical care because he has no health insurance. And because these people are loud and don't care, I think Germany will tell Greece to bug off. And the birthplace of Western civilization will suffer. But it's utility plants and other revenue producing property of the Greek people will go up for sale and some big companies will get some great properties at dirt cheap prices.
And the cruel irony is the Greeks will pay more for their water and sewer and police and fire and other things while their income goes down. But they will be told how much better off they are.
We all learned about the glory that was Greece over 2,000 years ago. I hope they enjoyed their glory back then cause they're sure getting their asses kicked now.
Ah, Truth, I see. I see.
ReplyDeleteI don't buying there olive oil will work. We no longer use oil to defend our castles. Greece needs to sell Athens.
ReplyDeleteThe last Greek thing I remember seeing was the movie My Big Fat Greek Wedding. They need to do something along those lines maybe.
ReplyDeleteI don't dig Greek food that much. Gives me a stomach ache. They're probably screwed. Once Halliburton takes over Greece will become a right to work (scab) country and statues of great Greek guys will be replaced with statues of Sam Walton.
It seems Greece is being held hostage to a host of circumstances beyond its control. As a Eurozone member country, it does not have its own currency that can be devalued, which means Greece has no means to readjust its trade position relative to other countries.
ReplyDeleteIts current account deficit is 12% GDP compared to Portugal and Spain at 7-8% each and Italy at 4%. Greece’s long-term debt is 127% of GDP compared to Italy at 116%, which is not a significant spread by itself. However what makes the long-term position of Greece unique is that most of Italy’s debt is held inside the country by private bond holders; whereas Greece is exposed to the bullying of international bond and hedge fund traders – the sociopaths of global finance. If you look at interest rates on Greek two-year bonds, rates have climbed from 3.4% in early 2010 to 26.65% this summer. Yes, 26% - that’s tantamount to loan sharking.
Even if Greece removes itself from the Euro and goes into a controlled default, its trade position will take a long time to recover. Why? Ouzo gives me a headache.
Thanks for the good information, Octo. Didn't know about the skyrocketing Greek bond rates. I think Iceland had the right idea: bail. But much harder to do in an indexed position inside the Eurozone. And I expect that IMF and the big banks will try to visit their revenge on Iceland in due course.
ReplyDeleteBut today it's time to replace the lawyer jokes with banker jokes...except that the bankers aren't at all funny.
The rich, corporations and some other businesses are very good at exploiting others' difficulties during economic crises. That's a big reason why when the rich and corporation control government, the economy goes from boom to bust, over and over.
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