If the freedom of speech is taken away then dumb and silent we may be led, like sheep to the slaughter.

- George Washington

Thursday 29 September 2011

The Greek Problem

I am grateful to Alice Cook and her blog UK Bubble, UK Economy for this post, which is the clearest and most succinct summary so far, of why the Euro is in such a mess.
Greece is only days away from national humiliation. The Greek government will admit what we all already know-that it can no longer service its debt. It will ask its creditors to restructure and write down government liabilities to more manageable levels.

Understandably, the Greek people have become deeply pessimistic about the future. This is reflected in the latest consumer sentiment surveys. Sentiment has fallen off a cliff, and Greeks are on the edge of a collective nervous breakdown.

Nevertheless, it is wrong to think that Greece is an outlier. It is not a special case. It is not unique. The Greek government made the same mistakes that other European countries made.
Read on ...

No comments:

Post a Comment

Comment is free, according to C P Scott, so go for it. Word verification is turned off for the time being. Play nicely.

Related Posts Plugin for WordPress, Blogger...