What's going to become of Greece? Economic debate

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!☣࿈ㄗɧᎧξɳི།χ࿈☣! Feb 26, 2012

In a few years time Greece will need another bailout and leave the euro zone
slugboy Feb 26, 2012

I kinda wish they had cut them this time round. They will drag down the euro for years and may still fail.
I do wonder what happens when a country goes bankrupt. It can't be pretty
[Add:Baz]Boffer Feb 26, 2012

Nah, it'll be fine. They'll turn the 4 year depression theyve had into a growth rate of 3% by 2014 to fulfil their requirements to the ECB and the WB, nay bother.
Noah10 Feb 26, 2012

slugboy wrote:
I kinda wish they had cut them this time round. They will drag down the euro for years and may still fail.
I do wonder what happens when a country goes bankrupt. It can't be pretty

Greece is awesome 😓
shin-soo choo Feb 26, 2012

PhoenixElite wrote:
In a few years time Greece will need another bailout and leave the euro zone

They will need another bailout in less than 1year. The structure of the bailout is fatally flaw. They need a principal reduction and orderly default. What they did/are doing with Greece will not work.
Looking at a structural problem as a liquidity problem will not solve the problem just kick it further down the road. All the bad debts that got America in trouble still exist. Rather than taking a haircut, financial institutions simply transferred all their bad debts to "public" balance sheets(fed, ecb, wb, IMF). They are all insolvent. A bailout from the ecb is only good until people realize this fact.
shin-soo choo Feb 26, 2012

And don't you people in Europe think it's odd how virtually simultaneously ex-Goldman sachs partners were propped up into power without proper popular elections( draghi-ecb, Monti-Italy,papedemos-Greece)? I would love an opinion of an Italian or Greek.

Goldman sachs is a publicly traded although only one fifth of the company is owned through publicly available stock. Current and past partners own a significant portion of the company. Do you think it is right for these people to have powerful roles in government when a company they own a portion of stands to win or lose big based on their decisions?
shin-soo choo Feb 26, 2012

The global slowdown was caused by excess consumption, debt, government spending, and credit.

The best solution we can come up with is more spending, more debt, and looser credit?