Lake Erie Conservative

thoughtful discussion(s) about issue(s)

Posts Tagged ‘Greece’

… So , What does Greece do Now ? [#economy][#euro]…

Posted by paulfromwloh on Saturday,December 10th,2016


.. well , to be honest , they did not belong in the euro in the first place . Their finances were never in good enough condition to meet what are called the ” Maastrict Criteria ” for entering the Eurozone ..

.. the drachma will soon return . That is very , very likely . But it will have very little credibility . Greece and her government will have to work and regain their people ‘ s trust ..

.. [h/t — Newsmax.com]..
.. [link] to the blog post ..

.. also , many savers and pensioners are likely to lose a significant chunk of their savings . The government will use it as part of a ” forced recapitalization ” of the banking system . It will be condemned widely by many , but the incompetence of Tsipras and Syriza has made this step necessary . Otherwise the banking system will need to be nationalized , which is what Greece does not need ..

.. elections will soon follow . Syriza is finished . The government will fall , and they will have to face some very angry voters . Even though the opposition is not exactly a bunch of ” rocket scientists , ” the Conservatives will then be given a chance . Syriza ‘ s total failure , along with some smart politics [a coalition with pro – labour factions] will help the country stabilize ..

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… The Situation with the Euro is Getting Dangerous [#a game of Chicken]…

Posted by paulfromwloh on Saturday,June 18th,2016

.. maybe Dr. Doom [Nouriel Roubini] is off of his game ..

.. maybe not .

.. the Greeks are testing the limits of the Eurozone system . No , they do not want to be kicked out of the Euro . Not without good reason . However , the Greeks feel that the austerity package that they are being forced to endure is intolerable . The debt load is accelerating , and the amount of austerity that Athens is forced to endure is becoming intolerable …

.. [h/t — Newsmax.com]..
.. [link] to the blog post …

.. The Germans are a patient people . They have rebuilt their fiscal reputation on being conservative and being very patient . Patience has its limits , though . Germany may feel that it may not be worth having Greece in the euro any longer , at some point . The question is , where is that point , and who makes the call ??

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… Greece is Now in Real Trouble [#the Euro]…

Posted by paulfromwloh on Saturday,June 18th,2016

.. the I.M.F. walking out of talks is not good ..

.. but neither is giving Greece more debt in order to pay off previous debts . That just does not make any sense at all . Extending the maturities will not do enough …

.. [h/t — FinancialTimes.com]..
.. [link] to the blog article …

.. You have to reduce the amount of principal , and , if possible , the interest rates , as well . Greece does not really merit a reduction in the interest rates , though . The principal reduction should do the job ..

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… Greece is in Big Trouble [#economics]…

Posted by paulfromwloh on Friday,June 17th,2016

.. the policies that its new government [the ultra left party , Syriza , and its coalition] want to enact involve a great deal of involvement in the state and the state sector . Those are policies that Europe is trying to move away from . The choices that Greece makes will affect it for years to come …

.. [h/t — Bloomberg.com]..
.. [link] to the news report ..

.. it is pretty obvious that Europe will not tolerate nor finance Greece ‘ s new policy choices . In order to make those choices , Greece will need financial help . If they do not comply with the austerity program , then they will not get the help from Europe . If so , then they will have to finance the new direction by themselves …

.. That will be no easy task . It will involve Greece ‘ s departure from the Euro , among the other things . It will also involve [at least temporarily] a great deal of inflation , as the economy and the private sector attempts to adjust . There is no guarantee that Greece will make it , at least without a great deal of turmoil …

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… The ObamaCraps should Not Meddle [#Greece]…

Posted by paulfromwloh on Thursday,June 16th,2016

.. those idiots in the ObamaCrap White House should know better . They have a hard enough time understanding our economy as it is . Now they are trying to meddle elsewhere . Yes , it is bound to get them into trouble …

.. the Europeans and Greece are having a hard enough time settling their own affairs as it is . The Euros keep piling more and more debt on the Greeks , instead of writing it off . The Greeks cannot pay what they have to pay now . one cannot expect them to pay more ..

.. [h/t — Newsmax.com]..
.. [link] to the blog column ..

.. yet the ObamaCraps are leaning on the Euro institutions and the I.M.F. . They want them to ” take it easy ” on the Greeks . That is hardly a way for the Greeks to pay off a manageable amount of debt , much less their current load . However , it is the Euros business to settle , not ours . It is not the place of the ObamaCrap White House and His Lordship to stick their noses in wheat is not their affair …

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… Greece is in real Trouble [#national Finances]…

Posted by paulfromwloh on Thursday,May 26th,2016

.. Greece has dug a real hole for itself with its profligate spending and taxes . Somehow , someway , it has to get its act together ..

.. right now , it does not look like that is going to happen ..

.. Greece has a notorious problem with spending . That is bad enough . Its problems with taxes and levels of taxation are even worse . In Greece , tax evasion seems to be a national sport . The Greek government seems to want to tax anything and everything that eats , breathes , squeakes , or moves . Not only that , it does so at a level that makes it very profitable for people to evade taxes , and not pay them …

.. [h/t — ca.yahoo.com]..
.. [link] to the news report …

.. right now , it is barely even to pay its lenders . It has to scrape by from any and every fund to make any payment , including those to government workers and pensioners . It can hardly plan for the future , when its micro – short – term focus is so ridiculous . For God ‘ s sake , it has to take drastic action ..

.. One principal problem is its ultra – leftist Syriza government . It wants to use many or all of the traditional socialist nostrums . Those are what is failing Greece now . The other is the IMF . It wants Greece to take the equivalent of financial strichnyne , and thus die a economic slow death . They are damned if they do , and damned if they don’t …

.. so , they have to do something . The question is what ??

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… Greece is headed for a Disaster of Colossal Proportions [#Grexit]…

Posted by paulfromwloh on Thursday,January 28th,2016

.. right now , Greece ‘ s exit from the Euro is only a matter of time . It is going to happen . But Why ?!?! …

.. Greece refuses to reform . Waaaay too much of Greece ‘ s economy is in the state sector . Their tax system is grossly inefficient . It does not collect the amount of taxes that it needs to …

.. Its banks are on the precipice . They are about to collapse . They have nobody but themselves to blame for this disaster ..

.. [h/t — DailyTelegraph.co.uk]..
.. [link] to the news article ..

.. it will take a long time for Greece to regain economic stability . Tsipras is done as PM . He and Syriza will be driven out of politics for their colossal mismanagement of the situation . They deserve it …

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… Financial instability in the Banks is Going to Drive This [#Greece][#financial crisis]…

Posted by paulfromwloh on Friday,January 1st,2016

.. it is the instability of the financial system , and that of the banks , which is going to drive this financial crisis …

.. why ? the outflows from the banks . The banks cannot sustain this for very long . With that comes pressure on the Greek Government from ” behind its lines …”

.. [h/t — Reuters.com]..
.. [link] to the blog news post ..

.. the Euro carries a deep well of popular support . It is a great deal more than the Greek drachma ever has had . So , it is in the Greek Government ‘ s interest to eventually make a deal …

— [update] — that it did .. the crisis was eventually settled after a  couple of weeks , but at a high cost .. several major Greek banks collapsed as a result of this brawl … also , Syriza [Greece ‘  s  current governing majority party] may well have won a majority again at an  election , but they  have the task  now of reviving  the economy ..

.. the business community will not be happy with radical leftists at the controls . They will be the ones picked on by the government for tax revenue .. Well , the business will not  be too  cooperative with investment unless Syriza agrees to play ball on spending ..  the EU and the ECB should be of help …

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… Greece needs a U.S. – style Chapter 11 restructuring [#bankruptcy]…

Posted by paulfromwloh on Thursday,December 24th,2015

.. it is that simple ..

.. Greece got itself into one hell of a pickle . It needs to get out of it . But piling on debt on top of more debt is not going to do it ..

.. economic stricnyne from the I.M.F. will not work . What the I.M.F. usually insists upon is austerity , always austerity . It means budget cuts , but also major tax increases . It almost never asks for economic restructuring from the target country . Which figures ..

.. [h/t — Newsmax.com]..
.. [link] to the blog post ..

.. the debt has to be written down . It is that simple . There is no other way around it , folks . Piling more debt on top of debt will not do it ..

.. Greece will need to undergo extensive economic reforms . The way that things are going now , Greece will undergo a very slow and painful economic death . Which is obviously something that they do not want . But they will have to do something about it ..

.. also , there will have to be asset sales . Greece cannot avoid it . There is waaay too much state involvement in the economy . It is strangling Greece , economically > Also , it is killing Gree in terms of its tax revenue …

.. whether Gree remains in the Euro is up to them . They know what they need to do .They just need to do it …

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… the Greeks are Insane [#EuroExit]…

Posted by paulfromwloh on Saturday,July 11th,2015

.. I think that Greece has gone mad ..

.. I also think that the E.U. has been mature about all of this . They have offered to help Greece , but the Greeks have been grossly immature about all of their finances . The E.U. has been the adult in the room , and has not blinked ..

.. to be honest , if they want the Euro to have a good reputation and a solid future , they cannot afford to blink ..

.. [h/t — DailyTelegraph.co.uk]..
.. [link] to the blog post article ..

.. Greece thinks that the E.U. will blink . I believe that the E.U. will not blink ..

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