As I read it, the Germans have agreed to join with the Euros (well, really, lead the Euros) in lending the Greeks money at below-market rates. This means that German citizens will invest stupidly. After all, if your bank offered 7% on a checking account, would you ask them to reduce it to 5% just for you?
Why anyone is lending the Greeks anything at all is beyond me. They can't pay back the debt they've got right now, how are they going to pay back still more debt later? In the end, I would still bet on bailouts.
And everyone participating knows the inevitable will arrive just a bit later.
ReplyDeleteSeriously, this is just postponing the problem and making it larger. I'm beginning to wonder if they even understand it. From listening to our own home-grown Eurosocialists like Obama, I don't think they get it at all.
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