Greece spending bailout money on weapons

[lestatdark]

kowenicki said:

lestatdark said:

kowenicki said:

greeceps3 said:

ok the ideal person to talk about this topic would be a greek and i happen to be one....i am very disappointed with the turkish answer because he doesn't know that the the history of my grandfather is greater that that of all turkey...i admit that we are facing a crisis but this is something every country has faced,is facing or will face and you,and i am not talkin only about the turkish, should not be so agressive with us....now....if we bankrupt it will have a lot of consequences for the global community so we need to cooperate...you should also know our tourism is probably the best in the world ...anyway this is gaming site but don't write thinks you don't know...just read some history

Whilst I sympathise... I dont think thats entirely true.  The Greek problem can be soaked up just about, the Greek economy is tiny.

I agree with this concept, in relation to the overall economy giants of the eurozone. Greece, Portugal, Ireland and even Spain (to some degree) can be considered tiny economies. 

But you've also got to remember what other economy is hanging on a very thing ledge: Italy. 

If any of the "tiny" economies collapse, then that would just create a cascade problem in which the Italian economy will also be a casualty. And if Italy's economy falls, then unfortunately, there's no way to just soak it up.

Greece is fine, Ireland is fine, Portugal probably too... but Spain would be a major problem, too much for French banks in particular to stomach.  Of course Greece plus Ireland plus Portugal is a different matter.

 

 

Yeah, I agree that the major issue would be with Spain going down. But from the look of things, it seems that at least Ireland is stabilizing and Portugal's on a good route for it too, we've already managed to go down to a 4,6% deficit the last year (when the projected deficit by the financial institutions was 5,5%) and our interest rates are lowering by a large amount. 2012 is going to be the real trial by fire for Portugal because if we manage to get to below 3% deficit, our interest rates will go back to pre-2009 levels and our market rating will increase again.

However, there seems to be no solution in sight for the greek problem, even after all the bailouts they've had and this second package doesn't seem to change much. This "incrustrated" weapons deal with the bailout packages might sting a bit (or a little, depending on how much is it) on the recovering economies, but Ireland went through it too and managed to recover, so there must be something terribly wrong over at the greek side for the continuous failures to kick-start their recovery of the economy.