Tuesday 21 June 2011

A Greek Tradegy?


So the world awaits the decision of the Greek parliament today. I have no insight as to which way it is going to go as either way the Greeks are screwed so it must be pretty hard to make such a decision (a real do I lose a leg or an arm movement?)

Global markets are very nervous - But what is puzzling me is the attachment of so much to Greece. One remembers the battle of Thermopylae and its significance to the Persian Wars - but today really is not like that is it? yet today does feel like the day when the US Congress was discussing the TARP during in 2008. That in itself if bizarre, a wealthy private investor could probably bail Greece out on their own, it is simply not the scale of the US; which just goes to demonstrate how much markets are driven by psychology and not rationality


Budgie said...

Absolutely right, CU, and as I commented in your last post. The German economy is 10 times the size of the Greek. All this hoo-ha is just to placate the German taxpayer (and us too).

The EU elite will not be sensible and eject Greece from the eurozone. They cannot afford to, otherwise it will become obvious that the euro is just a political scam that benefits only the EU elite. Therefore the political will is there but hidden at the moment.

hovis said...

I truly hope the Greeks stick two fingers up at the EU and dont pass the austerity measures.

There is a lot of ignorant small minded crap talked about the country. The essential problem is a mind bogglingly corrupt (pro EU) political elite who have been on the take for decades. This is not Germany or Scandinavia (thank god),in such circumstances is it any wonder that tax avoidance is rife?

To think that another bailout and selling assets (assuming the money does go were intended) only pays of debt. The interest rates are crippling and the cust so deep ( in this case) that the economy is shrinking. To expect growth in this situation to pay the debt and some is ludicrous.

Oh and this of course is before you consider sovereignty. Thisis just an attempt to make sure the French and germans are ok and the EU elite dont see the Euro turn to muck in their hands.

In the long run Greece can be better off out the Euro. May god bless and good luck to them.

Sackerson said...

Peston pointed out yesterday (BBC1news) that the EU stands to lose more than Greece, what with bank losses and interest rate rises if Greek bonds are defaulted.

Old BE said...

I am shocked by how little coverage there has been about the US debt ceiling which seems quite significant too!

CityUnslicker said...

BE - ture there is little about the US debt ceiling, but there are always dicussions like this in America and a deal is always done at the death - the news will be if it is not!

Bill Quango MP said...

Back to the old way of doing business.

Two Euro interest rates only.

One for countries that wear their shirts tucked into their belts.

The other for countries who prefer to wear shirts over the belt.

Elby the Beserk said...

So, if I have this right - the ECB wants to lend Greece even more money that it (the ECB) has actually got. They want to lend this money they haven't got to a country that hasn't got any at all, and as a result, has to borrow whatever to live paying back whatever + a regularly increasing rate of interest to pay back this loan of money they haven't got.

Something like that, yes? Eat your heart out, Peston

Sackerson - but that is what it is about, saving the Euro - bugger Greece, bugger Ireland - save the Euro and our beyond a dream gravy train, and fuck the rest of you. Up against the wall, I hope the Greeks tell them.

Pogo said...

Hmmm... I wonder why they're printing and stockpiling Drachmas..?

alan said...

And it is also a big media event. All the pundits can have a field day with nice scary stories about how this, that and the other is bad & evil & nasty. Yawn.

BE - Its not just the debt limit, but several states/cities in the US are in very bad shape too.

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