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

**vqIo7X2U** · 07-26-2011, 06:51 AM

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...

Well, Germany is certainly not in an economic downturn ( the opposite is the case, it has shown record growth for years, the economy is flourishing and unemployment has never been as low in decades). And to compare modern Europe to the recession of 1929 ( by the way) is rather ridiculous. Greece by the way is a country that stands for about 2,5 % of the EUs economy and will under no circumstances sink the european ship even in case of a complete default. The concern is more about the fear of contagion. Which hopefully is sucessfully averted for now which is too early to tell. The rating agencies judgement ( while downgrading Greece) wasn´t totally negative by the way :

Quote : / The rescue raised the chances that Greece could stabilise and reduce its debt burden, and it helped the eurozone by "containing the severe near-term contagion risk that would have followed a disorderly payment default."

But "Greece will still face medium-term solvency challenges: its stock of debt will still be well in excess of 100 percent of gross domestic product for many years."

The agency also noted that Ireland and Portugal, which are also being rescued by the European Union and International Monetary Fund, would benefit from reduced loan rates. But, "despite statements to the contrary, the support package sets a precedent for future restructurings."

Moody's downgrades Greece to near-default - FINANCE - FRANCE 24
Finally Graphs without text aren´t "strong signs" either".

07-26-2011, 06:51 AM	#19
vqIo7X2U Join Date Oct 2005 Posts 445 Senior Member	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... Well, Germany is certainly not in an economic downturn ( the opposite is the case, it has shown record growth for years, the economy is flourishing and unemployment has never been as low in decades). And to compare modern Europe to the recession of 1929 ( by the way) is rather ridiculous. Greece by the way is a country that stands for about 2,5 % of the EUs economy and will under no circumstances sink the european ship even in case of a complete default. The concern is more about the fear of contagion. Which hopefully is sucessfully averted for now which is too early to tell. The rating agencies judgement ( while downgrading Greece) wasn´t totally negative by the way : Quote : / The rescue raised the chances that Greece could stabilise and reduce its debt burden, and it helped the eurozone by "containing the severe near-term contagion risk that would have followed a disorderly payment default." But "Greece will still face medium-term solvency challenges: its stock of debt will still be well in excess of 100 percent of gross domestic product for many years." The agency also noted that Ireland and Portugal, which are also being rescued by the European Union and International Monetary Fund, would benefit from reduced loan rates. But, "despite statements to the contrary, the support package sets a precedent for future restructurings." Moody's downgrades Greece to near-default - FINANCE - FRANCE 24 Finally Graphs without text aren´t "strong signs" either".
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