Greece, a basket case economy ,and a corrupt country.

Discussion in 'Europe' started by 52ndStreet, Feb 12, 2010.

  1. 52ndStreet
    Offline

    52ndStreet VIP Member

    Joined:
    Jun 18, 2008
    Messages:
    2,883
    Thanks Received:
    147
    Trophy Points:
    83
    Ratings:
    +170
    I think the European union is making a big mistake in bailing out Greece. I hear the country is corrupt, and that they have no kind of economic discipline.

    They should be allowed to fail.
     
  2. Polk
    Offline

    Polk Classic

    Joined:
    Aug 25, 2009
    Messages:
    9,752
    Thanks Received:
    569
    Trophy Points:
    48
    Location:
    Republic of Pequod
    Ratings:
    +569
    A collapse of the Greek economy would bring the whole Eurozone to it's knees. They aren't saving Greece. They're saving themselves.
     
  3. uscitizen
    Offline

    uscitizen Senior Member

    Joined:
    May 6, 2007
    Messages:
    45,941
    Thanks Received:
    4,791
    Trophy Points:
    48
    Location:
    My Shack
    Ratings:
    +4,807
    I never did like musicals.
     
    • Thank You! Thank You! x 1
  4. 52ndStreet
    Offline

    52ndStreet VIP Member

    Joined:
    Jun 18, 2008
    Messages:
    2,883
    Thanks Received:
    147
    Trophy Points:
    83
    Ratings:
    +170
    How so, is the Greek economy really that integrated with the rest of Europe?, if thats the case the Euro isn't worth the paper its printed on .
     
  5. Polk
    Offline

    Polk Classic

    Joined:
    Aug 25, 2009
    Messages:
    9,752
    Thanks Received:
    569
    Trophy Points:
    48
    Location:
    Republic of Pequod
    Ratings:
    +569
    It's reasonable well integrated, but it's small, so that's not really the issue. The problem is that if Greece were to default on it's debt, that would increase pressure on countries (such as Spain and Portugal) in similar financial situations. The increased pressure over fear of default would result in higher interest rates, making default more likely.
     
  6. 52ndStreet
    Offline

    52ndStreet VIP Member

    Joined:
    Jun 18, 2008
    Messages:
    2,883
    Thanks Received:
    147
    Trophy Points:
    83
    Ratings:
    +170
    I see, some kind of Machiavalian, Robert Freedman ,school of economics, we are all kind linked socio economic principle huh.?
     
  7. Polk
    Offline

    Polk Classic

    Joined:
    Aug 25, 2009
    Messages:
    9,752
    Thanks Received:
    569
    Trophy Points:
    48
    Location:
    Republic of Pequod
    Ratings:
    +569
    Just to give you the alternative case: If Greece still used the drachma, they could simply devalue it. The result would be a sharper downturn, but they'd hit the floor quicker and bounce back.
     
  8. 52ndStreet
    Offline

    52ndStreet VIP Member

    Joined:
    Jun 18, 2008
    Messages:
    2,883
    Thanks Received:
    147
    Trophy Points:
    83
    Ratings:
    +170
    What about this "moral hazard" theory, what if another of the "PIGS" countries needs to be bailed out?What then for the Eurozone??:confused:
     
  9. Toro
    Offline

    Toro Diamond Member

    Joined:
    Sep 29, 2005
    Messages:
    50,711
    Thanks Received:
    11,045
    Trophy Points:
    2,030
    Location:
    The Big Bend via Riderville
    Ratings:
    +25,036
    Greece will get bailed out eventually. Much of its debt is held by German and French banks.
     
  10. Modbert
    Offline

    Modbert Daydream Believer Supporting Member

    Joined:
    Sep 2, 2008
    Messages:
    33,178
    Thanks Received:
    2,957
    Trophy Points:
    48
    Ratings:
    +2,962

Share This Page