DiscussWorldIssues - Socio-Economic Religion and Political Uncensored Debate - View Single Post - Eurozone leaders agree on new Greece bailout package

**Lyikmcmb** · 07-26-2011, 04:14 AM

Which is precisely what Europeans are doing ( except that most countries rather cut spending than taxes since to pay off debt revenues are necessary).
And good luck in solving your own debt mess. The Europeans at least have taken significant steps to tackle the problem ( although most countries are less indebted than the US). While you focus on raising the debt ceiling.

Unfortunately they are taking either the wrong steps or inadequate steps. The wrong steps are to try to follow austerity measures while in an economic downturn. That just makes things worse. Look at the US in 1937. Just doesn't work.

Meanwhile, the better off nations in Europe have to eventually accept that much of the debt of Greece et. al. won't ever be collected. The sooner they accept that the better.

Here are two strong signs that last week's plan was insufficient, again:
ITALY 10 - GERMANY 10 SPREAD (.ITAGER10:IND) Index Performance - Bloomberg
SPAIN 10 YEAR - GERMAN 10 YEAR (.SPAGER10:IND) Index Performance - Bloomberg

It's tragic what's happening to Greece and it looks like Portugal will soon follow. Let's hope not Italy or Spain...

07-26-2011, 04:14 AM	#15
Lyikmcmb Join Date Oct 2005 Posts 480 Senior Member	Which is precisely what Europeans are doing ( except that most countries rather cut spending than taxes since to pay off debt revenues are necessary). And good luck in solving your own debt mess. The Europeans at least have taken significant steps to tackle the problem ( although most countries are less indebted than the US). While you focus on raising the debt ceiling. Unfortunately they are taking either the wrong steps or inadequate steps. The wrong steps are to try to follow austerity measures while in an economic downturn. That just makes things worse. Look at the US in 1937. Just doesn't work. Meanwhile, the better off nations in Europe have to eventually accept that much of the debt of Greece et. al. won't ever be collected. The sooner they accept that the better. Here are two strong signs that last week's plan was insufficient, again: ITALY 10 - GERMANY 10 SPREAD (.ITAGER10:IND) Index Performance - Bloomberg SPAIN 10 YEAR - GERMAN 10 YEAR (.SPAGER10:IND) Index Performance - Bloomberg It's tragic what's happening to Greece and it looks like Portugal will soon follow. Let's hope not Italy or Spain...
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