Greece was Bankrupt in 2009, it still is!
Oh shit…. What price default?
Dear me, what a can of worms the Greek Government has opened.
Nothing said or done to address the myriad of other domestic problems the Country has… Just keep begging for bridging loans, to tide them over or, until a German handout comes or we will squash past loans that were illegal.
The question is, was the loans sought by each successive government odious, illegal or spurious enough to seek to cancel the debts under law?
Yanis Varoufakis made this point recently…
” Europe in its infinite wisdom decided to deal with this bankruptcy by loading the largest loan in human history on the weakest of shoulders, the Greek taxpayer. What we’ve been having ever since is a kind of fiscal waterboarding that has turned this nation into a debt colony.”
But wait Yanis…. Which period in your recent financial history do you want to repudiate?
This is “f&cking 2010” when a Greek default and debt restructuring wasn’t a realistic option for the EU. The Government was already bankrupt!
In the end private investors forgave around three-quarters of their investment all in all.
So Yanis ignores this….. he and his Government do not want to default (which is what I advocate they should do) but instead seek to have ‘odious’ loans dismissed.
Personally it is all theatrics, the Country was in bankruptcy well before the 2010 situation. It is simply that austerity will not work, come to think of it do the Greeks work?
What stranglehold do the Unions have on the Government?
What is the Government plan for the Country in terms of unemployment, social security etal?
It is not only the “haves” that have evaded taxation, it is the “have nots” so what is the their plan?
Try going back further and looking at the history.
When you do, then there are a few things that this incumbent Government has to do!
Nope, it is all semantics and bullshitting without addressing the underlying issues.
The Greek state had been borrowing recklessly in the 30 years before the crisis broke, and especially after 2000 entry, as Euro loans were cheap!
What had happened was that investors came to collectively bid down Greek bond prices to a few basis-points over German Bunds to end up owning 350 billion euros of Greek debt?
Investors lacked discipline, so they have to pay a price, as the lending in the case of Greece shows. So they paid a price in 2010, what price now?
For every reckless borrower there is a stupid or greedy investor.
Your Country was bankrupt well before this…
Yes of course people like David Stockman support this line of theory, the ‘true evil started with the bailouts themselves….”
Well I prefer to point my finger at Greece for the last 30 years, the politicians and current politicians inability to tackle what has to be done domestically.
Quoting Professor Milton Friedman “monetary unity imposed under unfavorable conditions will prove barrier to the achievement of political unity”…
So where to now?