Kasz216 said:
routsounmanman said:
Kasz216 said:
routsounmanman said:
Mr Khan said:
routsounmanman said:
Greece is ATM at 21% (official) and still rapidly rising. And if the new austerity measures (economy killers I say) come through today, woohoo, we'll be no.1 |
Some of the Papademos cabinet resigned over the proposals, didn't they? It's safe to say the Greeks are determined to resist austerity
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Wouldn't you if you already had your income cut by more than 40-50% already while our useless polititians got raises? You have to understand that most people here in Greece, know that we all had our share in our deficits, but only few bear the burden still, thus the riots.
And what would you do if aforementioned polititians did nothing for the best of your country? We have the strongest negotiation "card" in the world ATM. A Greek disorderly default could potentialy destroy the entire global economic system! Wouldn't you haggle more?
I'm not saying that we should blackmail the EU, but the measures could have been a bit smoother and fair overall. On top of that, all of Europe tags us as useless, lazy and EU cancer!
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Maybe a few months ago. Everyones pretty much written in the probability of a greek default at this point.
All a disorderly default would do at this point is force greece out of the EU.
Switching it's debt into Drachmas... which would then be greatly devalued vs their debts in euros....
HUGELY raising their debt.
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That's not true. Who in their right mind would buy / keep Portugese / Irish / Italian / Spanish bonds after a Greek default? People would start transfering money to other countries as well. The banks would simply not keep up.
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What's one got to do with the other?
Just that greece is a totally irresponsible country unwilling to live up to it's debts doesn't mean other eurozone countries are that way.
Other countries willing to do their fair share austerity wise will be fine.
The problem with Greece defaulting was that they owed debt to banks in other countries, including other eurozone countries, and that foreign banks would be badly wounded or even collapse or need massive bailouts due to being overleveraged and not having enough captial on hand.
Since then said banks have been raising capital and a "firewall" has been built around greece with plenty of room for more of a firewall if need be.
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Domino effect; If one country is allowed to default, Portugal and Ireland would be in the hotspot. And if you think austerity in the middle of recession has any chance of succeding, you couldn't be more wrong, both Greece and Portugal (and Ireland to an extent) prove that.
