Jim Jubak, one of my favorite financial commentators and one with a very level head, had this to say about the Greek deal;
The biggest problem with the deal, if there finally is a deal, is that the EuroZone has forced Greece down this road before and there is no reason to think that tax increases and cuts to government spending will stimulate growth in the Greek economy. If the definition of insanity is doing the same thing over and over again and expecting a different result, then this program is insane. This is a recipe for a contracting economy in Greece that will require more austerity that leads to even more of a decline in the Greek economy.I love Jim, but this still doesn't ask the right question. What are they going to do earn more money? As valued commenter Jedi Master Ivyan has noted after returning from a trip to Greece, the place is pretty wrecked and covered in graffiti. That means that the Greeks themselves are sabotaging their only real means of earning more money. If that's the case, then lending them any more money is a complete waste of time no matter what the PhD economists say.
|This isn't exactly welcoming. |
"An eldery woman begs by the Bank of Greece headquarters in Athens."