Greece ... the hits just keep on coming

[SAYIT]

Greece's predicament is a warning shot to any economy that fails to deal realistically with its situation. Her new gov't insists they be given fresh bailout loans and relief from previous ones. Creditors are not eager to throw good money after bad. The borrowing rate for the gov't is now 27% and even at that Greece will struggle to find lenders. Blood is in the water:

Ratings agency S&P has downgraded Greece's credit rating again, saying it expects its debt and other financial commitments will be "unsustainable"...

Official figures on Wednesday also showed Greece's deficit last year was higher than government forecasts...

Athens faces a "choice between paying the IMF or paying the wages and pensions of its employees", Raoul Ruparel, head of economic research at Open Europe, told the BBC.

"For a radical left-wing government such as Syriza, that is a very poisonous choice."

"Greece's solvency hinges increasingly on favourable business, financial, and economic conditions... In our view, these conditions have worsened...

Since the end of November 2014, Greek banks have lost about 14% of their deposit base to customer withdrawals and deposit outflows have continued...

Greece in new downgrade by S P for unsustainable commitments - BBC News

 

[Meathead]

The new radical-left party SYRIZA has completely destroyed all the modest gains made by the New Democracy party. They were overwhelmingly brought in by the electorate which believed they could skirt the debt. The electorate, and by extent, the Greek people are the ones who brought this upon themselves.

I don't believe the party will last the year, especially if Greece has to abandon the Euro.

 

[SAYIT]

The new radical-left party SYRIZA has completely destroyed all the modest gains made by the New Democracy party. They were overwhelmingly brought in by the electorate which believed they could skirt the debt. The electorate, and by extent, the Greek people are the ones who brought this upon themselves.

I don't believe the party will last the year, especially if Greece has to abandon the Euro.

"Athens faces a 'choice between paying the IMF or paying the wages and pensions of its employees'... "

There is a lesson in that statement that applies to many countries and in many municipalities across the US the choice is between paying pensions or current civil services.

 

[DarkFury]

The new radical-left party SYRIZA has completely destroyed all the modest gains made by the New Democracy party. They were overwhelmingly brought in by the electorate which believed they could skirt the debt. The electorate, and by extent, the Greek people are the ones who brought this upon themselves.

I don't believe the party will last the year, especially if Greece has to abandon the Euro.

If Greece defaults Germany will suffer. It will make Enron look like nothing.

 

[SAYIT]

The new radical-left party SYRIZA has completely destroyed all the modest gains made by the New Democracy party. They were overwhelmingly brought in by the electorate which believed they could skirt the debt. The electorate, and by extent, the Greek people are the ones who brought this upon themselves.

I don't believe the party will last the year, especially if Greece has to abandon the Euro.

If Greece defaults Germany will suffer. It will make Enron look like nothing.

Just for show the 20 year @ .5% interest debt could be converted to 50 yr (or 100 yr) @ .2% but it won't matter ... it will not be repaid. However finding a new sucker (China? Moscow?) to fund the Greek's excesses and failures - even at 27% interest - seems unlikely. A banking collapse followed by the printing of fake money by the gov't - basically I.O.U.s - will precipitate a general financial collapse and much deserved 3rd World status with all the trimmings. The same could happen to other socialist-type countries and for that matter, American cities that continue to ignore economic reality while fiddling with a Workers Paradise dream.
Socialism is a recipe for disaster:

INEPTOCRACY - a system of government where the least capable to lead are elected by the least capable of producing and where the members of society least likely to sustain themselves or even try are rewarded with goods and services paid for by the confiscated wealth of a diminishing number of producers.

 

[Manonthestreet]

Best thing they could do is boot the Euro

 

[Silent Warrior]

Best thing they could do is boot the Euro

I agree. That would hasten the total collapse of their economy and start the fall of the dominoes of socialistic governments.

 

[Manonthestreet]

Would enhance their ability to recover. IMF isn't there to help.

 

[SAYIT]

Would enhance their ability to recover. IMF isn't there to help.

Ah ... so you think defaulting on their current debt and leaving the Euro will somehow revive their moribund economy?

 

[saintmichaeldefendthem]

Would enhance their ability to recover. IMF isn't there to help.

Ah ... so you think defaulting on their current debt and leaving the Euro will somehow revive their moribund economy?

It's actually responsible nations like Germany that want out of the Euro so they don't have to bail out nations like Greece. Greece has it in its best interest to stay in the Euro because if it had independent currency, it would be worth next to nothing.

 

[HenryBHough]

No need to worry about Greece and economic collapse.

Do you doubt, even for a moment, that Obama, Kerry & Company will ride to the rescue with your tax dollars to "prevent the worst from happening"?

 

[saintmichaeldefendthem]

No need to worry about Greece and economic collapse.

Do you doubt, even for a moment, that Obama, Kerry & Company will ride to the rescue with your tax dollars to "prevent the worst from happening"?

Especially since he believes that Keynesian economics worked here.

 

[SAYIT]

No need to worry about Greece and economic collapse.

Do you doubt, even for a moment, that Obama, Kerry & Company will ride to the rescue with your tax dollars to "prevent the worst from happening"?

That would be a tough sell here. Enough of us have watched how Greece's new loony leftist gov't has treated both their existing debt (with disregard) and their creditors (with disdain). Despite sharply lower oil prices and a rebounding global economy, Greece's condition worsened in 2014. Not a good sign. The new S&P rating is low junk bond because Greece's debt is "unsustainable." In other words, their GDP can not support their lifestyle.

 

[Steinlight]

LOL, these inept wogs are a riot, can't even run their own country. Better off being annexed by Germany.

 

[Manonthestreet]

Would enhance their ability to recover. IMF isn't there to help.

Ah ... so you think defaulting on their current debt and leaving the Euro will somehow revive their moribund economy?

Gives them monetary options unavailable under IMF. EU made a bad loan and knew It. Is their economy going to magically improve, no, but it has no chance of improving under IMF.

 

[SAYIT]

Would enhance their ability to recover. IMF isn't there to help.

Ah ... so you think defaulting on their current debt and leaving the Euro will somehow revive their moribund economy?

Gives them monetary options unavailable under IMF. EU made a bad loan and knew It. Is their economy going to magically improve, no, but it has no chance of improving under IMF.

There are no magical money trees out there. Greece has exhibited not only an inability to keep its word on repayment but has arrogantly thumbed its nose at those who are on the hook. I seriously doubt any lender, regardless of the interest rate, will deign to be Greece's next sucker.

 

[Manonthestreet]

Did I say there was....dont think so........ Greec doesnt need more money....

 

[HenryBHough]

Did I say there was....dont think so........ Greec doesnt need more money....

Nonsense.

Greece has a problem.

The liberal solution to ALL problems is to throw money at them.

Your money, of course.

 

[SAYIT]

Did I say there was....dont think so........ Greec doesnt need more money....

Really? They are about to run out of the stuff, have a huge loan payment due and are begging for another 7 BILLION euro.

 

[Kondor3]

Hang onto your wooden drachmas, boys, the South (of Europe)'s gonna rise agin...